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Does this "$1B in revenue" include the $ that customers have deposited in order to buy cryptocurrency?
by aardvark291 9y ago
Does this "$1B in revenue" include the $ that customers have deposited in order to buy cryptocurrency?
- michaelchisari 9y agoAlso, how much of it is in fees collected and stored as cryptos themselves? If crypto takes a dive, does their revenue retroactively lose value?
- tomhoward 9y agoIt wouldn't, according to accounting principles. It would be accounted for as deposits received, with a balancing liability for when the customer makes a purchase or withdrawal. They would only record revenue when they charge a transaction fee, or any other charge/income that can't be used by/returned to the customer at their discretion. Revenue is only revenue if it doesn't incur a matching liability.
- aardvark291 9y agoI agree that that's how it should work, but I wouldn't be surprised if Coinbase wasn't completely orthodox in their accounting. Replies below indicate that they may indeed be counting customer deposits as "revenue".
- sethgecko 9y agoThey have like 20m users, that would mean $50 deposited per users so.. no
- btian 9y agoThat would be asset, not revenue.
- alant 9y agoYou mean Asset Under Management or AUM?
- gamblor956 9y agoPer sources connected to their Finance Dept, that $1 billion in revenue does include amounts that would not normally be included in revenue under generally accepted accounting principles (GAAP).
- pfarnsworth 9y agoNo, that is not revenues even in a pro-rata sense. That's a liability on their balance sheet.
- ActsJuvenile 9y agoCoinbase and GDAX products operate differently. Coinbase is a counter-party in all trades e.g., people buy FROM Coinbase or sell TO Coinbase. So $1B revenue number would include all deposits. GDAX accounting would only count commissions as revenue.