Coinbase indicated it expects to cut more jobs as the crypto exchange announced revenues only just exceeded losses in its latest quarter.
Fourth-quarter sales of US$605mln beat market expectations of around US$590mln, but the net deficit rose quarter-on-quarter to US$557mln.
For the year, revenues plummeted by 57% to US$3.1bn, while there was a net loss of US$2.6bn, though cash and equivalents at the year-end were still healthy at US$4.43bn.
Coinbase has been hammered by the slump in bitcoin, ethereum and other digital currencies during 2002, with the recent bounce in crypto markets coming too late to help these numbers.
More than 2,000 jobs were axed during the bitcoin slump, with a 20% cull in January following an 18% reduction in June but there might be yet more bloodletting, according to chief financial officer Alesia Haas.
“We are looking to improve EBIDTA year over year. If we find we are not able to do so, we will right size our expenses. We are nimble, we will take necessary steps,” she told reporters in a conference after the results.
In the statement, Coinbase said it generated $2.35bn in transaction fees in 2022, a 66% drop, though subscriptions, custodial fees, interest income, and blockchain rewards rose 53% to now make up 34% of total revenue and something that reflects its efforts to diversify away from just fee income.
Brian Armstrong, chief executive, also said he would be willing to go to court if the SEC sued it for the alleged selling of securities through its staking service.
Competitor Kraken was recently fined US$30mln for its staking programme as part of a clampdown by the regulator on the crypto sector.
The SEC has previously whipped Coinbase for not including customer assets held in custody on the balance sheet
Shares in the group have rallied with the crypto market, adding 80% since the start of the year and helped by the backing of Cathie Wood’s Ark ETF funds, which resumed buying in January and added more in February.
The shares remain 85% off their all-time high nonetheless and eased 1,5% overnight on the numbers to US$62.07.