United States-based cryptocurrency exchange Coinbase beat revenue expectations for the fourth quarter of 2022, but continued to see its transaction volume decline.
Net income for the exchange came in at $605 million for the quarter, surpassing revenues of $589 million reportedly estimated by Wall Street analysts
Transaction volumes decreased 12% compared to the prior quarter; however, Coinbase pointed to a 34% increase in subscription and services revenue as the reason for total revenue growth of 5% for the quarter.
Our fourth quarter and fiscal 2022 financial results are available.
Our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
โCoinbase (@coinbase) February 21, 2023
While Coinbase reiterated its belief that its staking products are not securitiesGambling revenue fell compared to the prior quarter, as falling crypto prices outpaced rising balances wagered across all cryptocurrencies.
Related: US Regulatory Crackdown Leads to $32M Digital Asset Outflows: CoinShares
The exchange is currently facing an investigation by the Securities and Exchange Commission (SEC) on its staking products, similar to the one that resulted in its crypto exchange Kraken fix with regulator for $30 million.
Coinbase noted that 2022 was โa challenging year for crypto markets,โ with macroeconomic events and events like the bankruptcies of crypto hedge fund Three Arrows Capital and the Voyager and Celsius exchanges resulting in strong headwinds for the industry.
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