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Coinbase is an atypical "tech" company to analyze because they're kind of like a bank: much of their asset sheet is driven by customer deposits. Apparently $738
by gen220 4y ago
Coinbase is an atypical "tech" company to analyze because they're kind of like a bank: much of their asset sheet is driven by customer deposits. Apparently $738m of customer funds were withdrawn from Coinbase in the last 3 months. This is in comparison to an inflow of $2.35bn (!) in 21Q1.
As for expenses, there is a usual culprit in the $352m of stock-based comp. There's a large impairment expense of $229m, which is caused by their crypto asset holdings. Together, those make up $600m, and don't involve the transfer of money.
> Under GAAP, we are required to record impairment charges on our crypto assets held when the price falls below its cost basis.
FWIW they went from $17.6bn cash on hand to $16.1bn cash on hand.
- azundo 4y agoCitation? I'm not sure how withdrawing of funds would be considered an operating loss. That's not how banks work either.
- gen220 4y agoYou're right; I'm sorry, I misread. It doesn't count as an operating loss, because it's not counted as revenue. It's counted as an asset/liability, not an expense/revenue, updated my original comment.
- Ekaros 4y agoIs that cash cash or does it include crypto they own?
- gen220 4y agoIt's cash cash, but $10bn is in custodial accounts for customers and $6.1bn is of it is actually "usable" for cash expenses. The $6.1bn figure comes after a decline of $762m of their own "usable cash cash" this quarter. Obviously not desirable, but who knows how crypto will play out.