Business
Coinbase is first crypto company to join Fortune 500
Dimapur, May 24 (EMN): American cryptocurrency exchange platform Coinbase has entered Fortune 500 list — an annual list of America’s largest corporations by revenue — becoming the first crypto company to do so.
According to Fortune magazine, the Nasdaq-listed crypto exchange posted totals of over $7.8 billion in revenue and $3.6 billion in profit in fiscal 2021. This has helped the blockchain and web3 company to enter the prestigious list at rank 437.
The 68th edition of the @Fortune500 is out. Check out the full list here: https://t.co/VeQjz1IfHA
— FORTUNE (@FortuneMagazine) May 23, 2022
Coinbase is one of the most successful newcomers to the Fortune 500 in 2022, alongside pharmaceutical giant Moderna.
The San Francisco-based exchange was singled out by Fortune editor-in-chief Alyson Shontell as one of “several pandemic winners” that “thrived under the freakish circumstances of Covid” and flourished thereafter.
However, 2022 has not been off to a great start for Coinbase, with net revenue of $1.16 billion and a net loss of $430 million for the first quarter of 2022.
“Its revenue declined 53% from the $2.5 billion it recorded in the fourth quarter of 2021,” wrote Fortune magazine. “If the company maintains the same revenue or lower for the next three quarters of 2021, it would fall short of the $6.4 billion revenue required to make it on the Fortune 500 this year.”
“Coinbase’s stock price has also taken a hit. Trading at about $60 as of Tuesday, its shares have declined about 82% from the $328.38 closing price on the company’s first day of trading last April.”
Despite the downturn, Fred Ehrsam, co-founder of Coinbase Global, used this opportunity to boost his COIN holdings: in the previous week, he purchased over one million COIN equities worth over $75 million.
The top five companies on the list remained unchanged since 2021 with retail giant Walmart capturing the top spot for the tenth consecutive year, with $572,754 million in revenue and a growth of 2.4%. Amazon, Apple, CVS Health and United Health Group rounded up the top five on the list.