Coinbase Net Loss Shrinks in Q1, Company Calls it a ‘Turning Point’

The crypto exchange’s adjusted EBITDA returned to a positive number in the first quarter, totaling $284 million

article-image

Coinbase CEO Brian Armstrong | Source: TechCrunch "775208327GB00107_TechCrunch" (CC license)

share

Coinbase posted a net loss of $79 million during the year’s first quarter, the company reported Thursday, as its streak of consecutive quarters with negative net income extended to five. 

But the net loss last quarter was significantly smaller than quarterly losses endured throughout 2022.

After posting a net income gain of roughly $3.6 billion in 2021, Coinbase lost money in each quarter last year — totaling a net loss for 2022 of about $2.6 billion. 

The company’s net revenues grew by 22% quarter over quarter during the first three months of 2023, and total operating expenses declined by 24% over that span, the exchange reported Thursday.

“This quarter represented a turning point in our drive towards building a company that is more efficient and financially disciplined,” Coinbase said in a shareholder letter.

Coinbase trading volumes were $145 billion — flat from the prior quarter but less than half of the $309 billion the exchange saw in the first quarter of 2022.

The crypto exchange’s stock price closed at $49.22 on Thursday — up 1.5% on the day. The stock is up about 46% year to date, but has sunk 19% from a month ago. 

Shares were up about 3% in after-hours trading, as of about 4:20 pm ET.

The financials come as regulatory uncertainty swirls around the company.

The SEC served Coinbase with a Wells notice in March for alleged securities violations. Coinbase Chief Legal Officer Paul Grewal said in a blog last week the company believes it has never listed securities and is set to “vigorously defend ourselves.”

“We see this as an opportunity to continue pushing for a clear rule book in the US for crypto regulations,” Coinbase said of the Wells notice in the Thursday letter. “The US can’t afford to fall behind on this important technology that can update the financial system and keep 1 million jobs in America.”

Also last week, Coinbase filed a petition in the US Court of Appeals’ Third Circuit to get the SEC “to act on Coinbase’s pending rulemaking petition to provide clarity for the crypto industry.” 

The company’s results also come after Citigroup analyst Peter Christiansen downgraded the stock earlier this week. 

Other industry watchers told Blockworks that while unclear crypto regulation in the US is a concern for Coinbase, its efforts to stand its ground against the securities regulator could prove a positive for the exchange — and the industry — over time. 

Owen Lau, executive director for Oppenheimer Co., said earlier this week that Coinbase’s stock price could see a jump if the company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) could go positive — a reversal from an adjusted EBITDA loss of $371 million in 2022. 

Adjusted EBITDA returned to a positive number in the first quarter, totaling $284 million.

“We maintain our goal to improve full-year 2023 adjusted EBITDA in absolute dollar terms versus full-year 2022,” the company said in Thursday’s letter.

This is a developing story.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /