Coinbase earnings report was better than expected

in #cryptolast year

They still made a loss, but not as bad as the market was expecting.

Revenue was $772.5 million, down 33% compared to a year ago. Operating expenses were $896 million, down 48% compared to a year ago. The shares rose by 9% to $53. As long as they can continue to cut costs, they're in the game.

Their big risk is the SEC and adverse judgements from them. To help mitigate the risk, they're closing down their Coinbase Borrow program from May 10th. Coinbase Borrow allowed people to borrow up to $1 million, secured against bitcoin. This was similar to what the now defunct Celsius offered. The risk is that when bitcoin declines, the borrower gets margin-called, and people are not usually prepared for that.

Coinbase has obviously decided the hassle associated with this is not worth what they're making from the loans.