New York-based blockchain security services provider Fireblocks has earned more than $100 million in annual recurring revenue (ARR) this year, confirming growing interest in the crypto ecosystem that defies negative investor sentiment.
ARR refers to the recurring revenue a company earns on a subscription basis. As a software-as-a-service provider, Fireblocks has seen huge interest in decentralized finance, blockchain and Web3 technologies.
The reason for the increased revenue in the ongoing bear market can be attributed to an overall change in mindset, as companies and investors seem more inclined to explore the use cases of cryptocurrencies rather than chasing market volatility for a quick buck.
Fireblocks co-founder and CEO Michael Shaulov shared insights about the growing customer base:
“We’ve seen first-hand the innovation taking place among fintechs, Web3 start-ups, banks and payment service providers who are diligently bringing new digital asset products to market.”
In addition, consumer brands, gaming companies, and crypto-startups contributed to Fireblocks’ revenue of $100 million by 2022. As cryptocurrencies continue to permeate the global financial infrastructure, Fireblocks expects to strengthen as a tool for businesses delivering secure crypto products.
In its announcement, Fireblocks further revealed partnerships with industry leaders including BNP Paribas, Six Digital Exchange, ANZ Bank, FIS, Checkout.com, MoonPay, Animoca Brands and Wirex.
Speaking about the company’s future, Fireblocks CTO Idan Ofrat affirmed Fireblocks’ commitment to delivering solutions for emerging markets and use cases such as stablecoin issuance, non-fungible token (NFT) cash register and crypto payment management.
In 2021, the crypto exchange FTX saw a 1000% increase in sales how the bulls took over the crypto market, as revealed by leaked internal documents.
Audited financial results for the 2020-2021 fiscal year showed that FTX’s revenue grew from $90 million in 2020 to $1.2 billion in 2021, CNBC reports. The report further claims that FTX held $2.5 billion in cash by the end of 2021 with a profit margin of 27%.
However, the ensuing bear market coupled with regulatory hurdles is expected to reduce impressive revenue numbers across the crypto ecosystem.