Coinbase CEO Reveals Company Holds Over $39 Billion Worth of BTC In Response to Now-Deleted Binance CEO Tweet
As major crypto exchanges are intensifying efforts to assure customers and investors of their stability, Brian Armstrong, the CEO of Coinbase, has revealed that his company holds crypto reserves that include some 2 million BTC worth about $39.9 billion.
“We hold ~2M BTC. ~$39.9B worth as of 9/30,” the CEO tweeted, making a reference to the company’s disclosed financial results for the third quarter of this year.
“We all need to come together to build this industry in a responsible way going forward. Be wary of false information,” added Armstrong.
The businessman also referred his followers to Coinbase’s shareholder letter for the same period of 2022.
Amid a crypto market downturn, Coinbase has posted disappointing results for the July-September 2022 period, as the business reported a net loss of some $545 million.
“Q3 was a mixed quarter for Coinbase. Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” Coinbase said in the letter.
“Meanwhile, we saw strong growth in our subscription and services revenue, driven by our participation in the USDC ecosystem and higher staking activity. While the macro headwinds are beyond our control, we continue to focus on factors within our control: narrowing our product focus to deliver amazing customer experiences and reducing our operating expenses,” according to the exchange.
Coinbase saw its transaction revenue drop by 44% quarter-on-quarter to $366 million. However, on a more optimistic note, the exchange’s “subscription and services revenue increased 43% sequentially to $211 million, driven by higher interest income. Q3 net revenue was $576 million, down 28% compared to Q2,” the letter said.
Armstrong’s latest announcement comes in the aftermath of the collapse of Coinbase’s rival exchange, FTX, which has since filed for bankruptcy. As FTX is advancing through its voluntary Chapter 11 proceedings, Bankman-Fried, the company’s founder and former CEO, is making efforts to raise new capital to make the collapsed firm’s customers whole despite bankruptcy filings.
The highly controversial entrepreneur has announced he is "meeting in person" with both potential investors and regulators to do what they can for customers. "And after that, investors. But first, customers," Bankman-Fried said in a tweet.
Sam Bankman-Fried's alleged mismanagement of funds could make it very difficult for him to convince investors to inject major funds into his future ventures.