Welcome to The Blockchain Report, your daily rundown for the latest in crypto with your host, Taylor Nikolai. First up: ever wonder how much Coinbase makes?
Coinbase made a ton of money this year. According to Bloomberg, the widely popular cryptocurrency exchange Coinbase is projecting revenue for this year of nearly $1.3 billion. Furthermore, earlier this month Coinbase raised money to bring the company to a valuation of $8 billion. The $8 billion valuation is five times higher than what it was early last year.
Most of the company’s $1.3 billion in revenue comes from commissions for trades. You know that little bit of extra money you have to pay when you do something on Coinbase? You contributed to that $1.3 billion. The rest of the money comes from gains and losses on its own cryptocurrency holdings.
In fact, in 2016 Coinbase’s revenue was only $17 million and the company incurred a net loss of $16 million. By 2017, the company recorded a profit of $380 million. Coinbase is doing alright for itself.
Asiff Hirji, Coinbase’s chief operating officer, said: “The companies interested in investing in us know that this is the next wave of tech innovation… This was an opportunistic round. We didn’t have to go out and raise capital.”
Check out more stories concerning Coinbase in the video above.
Thanks for watching The Blockchain Report. Be sure to follow @BlockchainReport on Instagram to stay up to date on the latest cryptocurrency news and trends. We’ll see you tomorrow.
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