Shares in Coinbase, America’s largest cryptocurrency exchange, surged over 13% on Friday after its Q1 earnings numbers showed signs of recovery from its dismal figures in 2022.
The company reeled in $736 million in revenue in the first three months of the year—a 22% boost from the previous quarter—while also decreasing operating expenses by 24% within that time.
This was in line with Coinbase CEO Brian Armstrong’s decision in early January to cut the exchange’s headcount by 950 people.
The value of assets on Coinbase’s platform also underwent a massive 62% surge to $130 billion this quarter, assisted by Bitcoin’s surge 72% surge from the beginning to the end of Q1.
“We’ve been focused on building an increasingly efficient business that can do more for less,” stated Coinbase after releasing its earnings report on Thursday. "We reduced costs, doubled down on operational excellence and risk management, while continuing to drive product innovation and regulatory clarity.”
COIN was hammered throughout all of 2022 amid a combination of macroeconomic headwinds and a tanking crypto market, and is still down roughly 83% from its 2021 highs. The firm has since been targeted with a Wells Notice by the Securities and Exchange Commission signaling an intention to sue for potential violation of securities laws.
The exchange refuses to back down, however, clapping back with its own lawsuit to force the regulatory agency to clarify crypto regulations last month. The company is also preparing to potentially move its headquarters outside the US if regulatory challenges in the region persist – potentially to the United Kingdom.
In the meantime, the exchange has agreed to shutter its Bitcoin borrowing service starting next week to appease regulators.