The digital currency exchange and wallet service Coinbase, founded in 2012 and backed by Silicon Valley investors, recently told shareholders that it booked $1 billion in revenue in 2017. A new independent analysis says about 43 percent of that came in December when the price of bitcoin was surging, and the company’s revenue has plummeted since then.
“By no stretch of the imagination are they continuing that same trajectory,” says Jonathan Meiri, CEO of Superfly Insights, which analyzes data about consumer behavior. “There is a rise up in December. It’s not like it stayed on this plateau into January, February. It came crashing down.”
Higher prices and greater trade volume meant higher transaction fees for Coinbase and a gross revenue that will be hard to beat unless bitcoin prices surge again in 2018.
Coinbase has raised more than $225 million from investors. Its most recent funding round valued the company at $1.6 billion, in part due to its explosive growth.
Write: Sara Bauer