- Coinbase reported a lower-than-expected loss of $1.1 billion in its second-quarter report.
- Brain Armstrong has envisioned the firm’s innovation to drive Coinbase’s growth.
- Armstrong highlighted the firm’s risk management amid falling crypto prices.
Bran Armstrong’s Coinbase reported $808 million in revenue in the second quarter. This figure is millions below what the analysts had predicted for Coinbase.
According to Armstrong, Coinbase’s long-term vision of internet adoption and e-commerce helped the company to sustain amid the troubled market conditions. The fall of TerraUSD and the prolonged bear market had an adverse effect on several firms making them end up in a financially troubled situation. Amid all the chaos, Coinbase COO Emilie Choi touted the risk management of the firm that helped the firm stay afloat.
Armstrong highlighted that the firm had ramped up its balance sheet by focusing on services and subscription income. Currently, this figure constitutes 18% of the firm’s revenue, which Armstrong envisions to be 50% soon.
The firm holds a reported $6 billion in assets that include upcoming acquisitions and mergers on its balance sheet. In a restructuring plan to cut costs, Coinbase is also planning to reduce its marketing expenses. It will also bring down its external vendor and cloud-provider costs, as stated by Armstrong.
If the troubled market situation were not enough, the company is facing regular scrutiny from the authorities. Armstrong said that the firm’s staff is more than happy to cooperate and comply with any regulators and policymakers.
Referring to the SEC’s recent investigation into the potential listing of unregistered securities, he added that any token found to be a security will be delisted immediately.
Coinbase has been dealing with hard times for quite some time. With the company’s forecasted revenue dropping lower than expected in its Q2 report, the firm has struggled to keep its stance. With Armstrong’s long-term vision, the company envisions being in a better position a few years down the line.