US-based leading crypto exchange, Coinbase has become the first crypto company to make it to the list of Fortune 500 companies, the annual list of the largest US companies by revenue. Coinbase is ranked 437th among Fortune 500 companies for 2022.
The development comes despite the current challenges facing Coinbase that have been largely brought on by a bearish market. While Coinbase fared well enough, Fortune ranked the companies based on their 2021 revenue.
The revenue threshold for the 2022 Fortune 500 listing was $6.4 billion and Coinbase’s revenue for 2021 was $7.8 billion. This limit was 16% higher than the previous year’s limit.
2022 coinbase performance
2022 hasn’t been great for Coinbase so far. It posted net revenue of $1.16 billion in its first quarter with a net loss of $430 million. In comparison, Coinbase posted revenue of $2.49 billion in the fourth quarter of 2021.
Coinbase’s poor performance in the first fiscal quarter is due to the recent drop in crypto prices due to a drop in trading volumes across crypto exchanges.
As a result, Mizuho Securities recently revised its forecast for Coinbase’s full-year 2022 revenue to $5.6 billion, down from its previous estimate of $6.7 billion.
Coinbase shares are currently trading near an all-time low of $66 and they have dropped to $40 this month. They are down more than 88% from their first price which was above $328.
As a result of the current turbulent market, Coinbase CEO and President Emily Choi recently reported that the company will be slowing down recruitment.
“Early this year, we plan to triple the size of the company. Given the current market conditions, we anticipate slowing hiring and shifting our workforce against our top priority business goals. It is prudent to reevaluate.”
Choi, however, assured investors that Coinbase has a strong position and a solid balance sheet, noting that Coinbase has gone through several market downturns and has strengthened each time.
It will be interesting to see how the crypto exchange performs this year and whether it will make it to the Fortune 500 list in 2023.