Coinbase, a U.S.-based cryptocurrency exchange, has been named to Fortune 500 list. This prestigious list is composed of companies that have successfully established themselves in trading and finance.
Despite the recent decline in the market-cap value of cryptocurrencies, Coinbase still maintained its position as one of the most prominent companies in finance. Its stock price is currently trading at $60.71.
In the first quarter of 2022, Coinbase reported a loss of $430 million, the first loss in the company's history. It was surprising to many investors and analysts due to the company's consistent profitability.
Despite the company's financial troubles, Brian Armstrong, the company's CEO, remained optimistic about the company's future. During the company's earnings call, he noted that he was still very confident in the company's ability to continue growing.
The Fortune 500 recognition is a significant achievement for the entire cryptocurrency industry. It shows that cryptocurrencies are more than just "magic internet money." It also validates that this money is more than just a safe haven.
If we had a bitcoin for every time somebody said “crypto is dead” … pic.twitter.com/nlYWQXUFWO
— Coinbase (@coinbase) May 19, 2022
Surpassing Victoria's Secret on Fortune 500 list
Due to the company's impressive financial performance during the past year, it was able to slip into the 437th position on the list. For instance, during the year-end in 2021, the company's revenues reached almost $8 billion.
It's a significant achievement for a company that's already established itself in finance. It's ahead of well-known organizations such as Hertz, Victoria's Secret, and Hasbro.
For the 10th year in a row, Walmart has been named the world's largest retail organization. It's able to achieve a revenue of almost $557 billion. Amazon was second with a revenue of $468 billion, and third place was occupied by Apple with $354 billion.
In early 2022, it was reported that Walmart had filed multiple patent applications related to its plans to launch a digital currency and NFT.
Earning spotlight in 2021
In less than a decade of operation, the company became a prominent name in the cryptocurrency industry when it went public in April 2021.
Before its direct listing, many experts believed that the company would be valued at around $100 billion. However, it ended its first trading day with a market cap of over $61 billion. It was only slightly above the market cap of another startup company, DoorDash.
In 2021, Coinbase's revenue was almost $7.8 billion. This figure was well above the minimum of $6.4 billion needed to be included in the Fortune 500.
Despite the company's impressive financial performance during the past year, it was still able to experience a rough start to the new year due to the various factors that affected the cryptocurrency market. According to a report by Bloomberg, Coinbase only has about 2,900 unique users on its marketplace.
One of the main factors that affected the company's earnings was the lower market cap of Bitcoin. Bitcoin, which accounts for about 44% of the total cryptocurrency market, is currently trading at around $30,000, its lowest level in over a year.
Due to the crashing market, the company's first-quarter trading volume was less than expected. It was reported that the total volume of transactions on its platform was around $309 billion, which was less than the previous quarter's record of $547 billion.