Coinbase UK, which is a subsidiary to the worldwide crypto exchange platform Coinbase, has just released its numbers for the first year on the market. unfortunately, we cannot compare it to anything else, because this was their very first year on the British market which makes it impossible to give them a well thought out rating so far.
Even though it is impossible to compare it to last year results in order to tell the growth rate because there are none. it is still possible to say that the company was able to procure quite a large amount of revenue for its first year in such a Forex and other trading assets heavy market. For a subsidiary they managed to do better than many other cases of subsidiaries, bringing in more than 125 million Euros as revenue.
Most of the times when we mention revenues being quite high, we need to also mention the fact that some of the costs were high as well. In the case of Coinbase UK, the subsidiary had sales costs of nearly 120 million Euros. Add that to the administrative costs of nearly 4 million Euros the company still managed to squeeze through with a solid profit of more than 5 million Euros. However, some of the interest expenses have not been calculated yet. It is believed to be nearly 2 million Euros which will leave the company with even fewer profits in total. Adding to that the taxation amounts to about 1 million USD which finally gives us an amount which we can easily say that Coinbase UK made. Their profit for the first year was 3 million USD.
The results for the company’s profits in the year 2018 are yet to be found out, but at that point, there will at least be something tangible to compare new results to. The good news is that this year’s profits are not sky high, which means that they are still very much achievable, but how much the company will overachieve is still a mystery.
Coinbase as a whole made almost 1 billion USD in revenue throughout the year. This was nearly a 50% increase for the company. However, the future isn’t looking good because it has been mentioned, that most of the revenue which was later converted to profits, was made during the 2-month boom of the cryptocurrencies. How sustainable that is we do not know, but what we do know is that a two-month boom every year is quite unlikely. The sad reality is that Coinbase is slowly losing traders, because of brokers starting to step in the whole ordeal and taking over the industry. Also, a lot of same service providers have appeared on the market, making it hard for Coinbase to retain its customer base. its reported that they have lost 83% of the activity they had in August compared to January of this year. It is very unlikely that a new boom will be hitting the markets now that the crypto industry has been in some ways stabilized and monitored.