The largest U.S. crypto exchange, Coinbase, reported $2.5 billion in net revenue for the fourth quarter of 2021, beating analysts’ expectations by 27% despite the crypto market’s massive plunge.

FactSet Financial Researcher has forecast Coinbase will generate approximately $1.9 billion in revenue during this period. Notably, transaction revenue more than doubled from Q3 to Q4, with 91% ($2.276 billion) of total Q4 revenue coming from transactions alone.

To boost investor confidence, Coinbase’s total trading revenue for 2021 is $6.8 billion. Although the report reports net sales of $840 million and shows significant growth from 7.4 million monthly trading users (MTUs) in the third quarter to 11.4 million in the fourth quarter, COIN’s share price is trading in the after-market (4:00 p.m. to 8:00 p.m. ET) down 4.7%. , now down 30% year-to-date.

It’s also important to note that $213 million, or 9% of its fourth-quarter revenue, was generated by non-commercial products from other sources such as lending and staking.

Coinbase stated that recently crypto market volatility and asset prices have fallen from all-time highs in the fourth quarter, partly due to uncertainty in global market conditions. As a result, the report states that Coinbase expects MTU and trading revenue to decline in the first quarter of 2022.

Despite a potentially slow first quarter, Coinbase wrote to its investors that it plans to “actively invest” internally in 2022 while ensuring it remains prepared for any volatile conditions in the market.

“In the event of a sharp decline in our business below planned ranges, we may slow our pace of capital expenditure and are expected to adjust our Adjusted EBITDA loss to approximately $500 million on a full year basis.”

Coinbase also points to the growth of Web 3, NFT, and DeFi as sources of future growth for the company, using the rapid spike in NFT sales in 2021 as a point of reference.

They also plan to hire 6,000 employees by 2022, with an emphasis on customer care and reliability, which Coinbase has historically maintained.

Coinbase predicts that between $4.25 billion and $5.25 billion will be invested in 2022, with a large focus on the technology and development teams.

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