US cryptocurrency exchange Coinbase beat revenue expectations for the fourth quarter of 2022, but transaction volume continued to decline.
Net income from the exchange was $605 million surpassed $589 million in revenue for the quarter supposedly Wall Street analysts estimate
Transaction volumes were down 12% compared to the previous quarter, however Coinbase pointed to a 34% increase in subscription and services revenue as the reason for the 5% increase in total revenue for the quarter.
Our financial results for Q4 and FY’22 are available.
Our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
While Coinbase reiterated its belief that it did betting products are not securitiesWagering revenue fell compared to the previous quarter as the decline in cryptocurrency prices outweighed the increase in staked balances across all crypto tokens.
Related: US regulatory crackdown leads to $32M digital asset outflow: CoinShares
The exchange is currently underway faces investigation Securities and Exchange Commission (SEC) into its betting products, similar to the one that resulted in its peer crypto exchange Kraken alignment with the regulator for 30 million dollars.
Coinbase noted that 2022 was a “challenging year for crypto markets” with macroeconomic events and events such as the bankruptcies of crypto hedge fund Three Arrows Capital and exchanges Voyager and Celsius resulting in strong headwinds for the industry.
