In a big achievement for the crypto industry, Coinbase became the first crypto firm to reach the Fortune 500 List.
While the U.S-based crypto exchange has struggled to meet analyst expectations, it had a strong 2021. Due to this, Coinbase propelled it to number 437 on Fortune’s list of the biggest U.S. companies.
In fact, Coinbase jumped into the spotlight way before reaching the Fortune 500 list. Last year in April, Coinbase went public through a direct listing. Analysts had predicted that Coinbase will debut with a $100 billion evaluation. However, it closed its first day of trading with a $61 billion valuation.
The crypto exchange outdid DoorDash for the 7th highest market cap among U.S. companies on its first day of trading.
For consideration to the Fortune 500 list, the company has to have a total revenue of over $6.4 billion. In 2021, Coinbase’s 2021 revenue stood at $7.8 billion. As for 2022, the threshold stands at $5.4 billion for the 2021 list since it only accounts for that year’s performance.
It’s a tough time for crypto in 2022 as many of them have crashed severely in the recent weeks. Moreover, trading volumes have also taken a hit. While crypto companies such as Coinbase decided to diversify their portfolio by launching NFT marketplaces, the monthly active users stood at 2,900 users.
Severe market crash has caused Coinbase to miss its analyst expectations for the first quarter. The company reported net revenue of $1.16 billion for the first three months. It had a net loss of $430 million. Moreover, the company’s revenue dropped from $2.5 billion in the 4th Quarter 2021 to $1.16 billion (53% drop).