The company has also not shied away from using debt and capital raise transactions to buy BTC if it deems market conditions to be favorable. MicroStrategy’s bitcoin acquisition strategy involves the company using leftover funds to buy BTC. As of July 2023, MicroStrategy held 152,800 BTC acquired at a total cost of $4.53 billion, making the company one of the biggest bitcoin whales in the world. Over the last decade, the company has used free cash flows from its software business to acquire and hold BTC for the long term. MicroStrategy is an enterprise software company that is known for its bitcoin acquisition strategy. Meanwhile, The Coinbase Wallet remains a popular non-custodial wallet that allows users to experience DeFi and other Web3 applications. The company launched an Ethereum layer-two rollup called Base in 2023 which is expected to spearhead its decentralized finance (DeFi) charge. In 2023, Coinbase acquired an undisclosed equity stake in stablecoin USD Coin (USDC) issuer Circle. Coinbase also earns interest income from crypto loans and interest on customer custodial funds. The company offers custodial services such as cold storage solutions to clients. The drop in crypto trading volume in 2022 saw Coinbase post an annual net loss of $2.62 billion.Īlthough Coinbase earns a major chunk of its revenue from trading, it would be a mistake to look at Coinbase as “just a crypto exchange.” The company is constantly innovating and diversifying away from its trading business.Ĭoinbase provides staking-as-a-service to retail and institutional clients. However, as the crypto winter took over in 2022 and the excitement among the public faded, Coinbase’s full-year revenue fell nearly 50% year-on-year to about $3.15 billion. That same year, the company’s share price hit an all-time high of $429. In 2021, Coinbase reported full-year net revenue of about $7.84 billion, out of which the company pocketed $3.62 billion as net profit (46% profit margin).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |