Coinbase Global, Inc. today announced the publication of its shareholder letter for the fourth quarter and full year. The letter underlines that 2023 was a very important year for the company since they showed strong financial results that were registered, launched many product innovations, and generally devoted to regulatory clarity within the cryptocurrency space, mostly in the United States.
Throughout the year, the company demonstrated the aforementioned operational excellence, which resulted in a net income of $95 million for the full year and positive Adjusted EBITDA in all four quarters totaling almost $1 billion. The company’s diversification of revenue streams in subscription and services revenue of $1.4 billion attributed to a total revenue base of $3.1 billion by the close of 2023. Also, taking into account the balance sheet of Coinbase, it held total USD resources at $5.7 billion and managed to decrease total debt by 12% in a year, which overall shows healthy financials.
On the innovation side of products, the company speeded its product velocity and launched new offerings, including Coinbase International Exchange, derivative products through Coinbase Financial Markets, Base, a layer-2 network that is designed to improve the transaction speed and reduce the cost. Additionally, the company expanded its operations globally, obtaining licenses or registrations in six new markets.
Coinbase Strategic Priorities for 2024
Looking to 2024, Coinbase has put forward three key areas in which it will focus. First, driving up revenue is through improved core trading capabilities and increased utility of USDC. Lastly, it will work on the possibility of crypto usage in payments using USDC and Base. Lastly, the company will always keep on fighting for regulatory clarity within the industry.
Challenges in the United States, however, remain despite advances worldwide in regulatory clarity. Coinbase has supported legislative efforts and initiatives to enhance crypto-friendly policies alongside other industry participants.
For example, it contributed to Fairshake Super PAC and also helped found Stand With Crypto—a grassroots movement pushing for pro-crypto policies. Another source of regulatory clarity comes from the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Though uncertain, yet the company is determined to get a positive ruling.