Coinbase becomes first crypto company on Fortune 500 list despite recent plummet in value
Link copied to
US crypto-exchange giant Coinbase has just received a seal of approval from a 68-year-old “TradFi” institution – an entry on the prominent and prestigious Fortune 500 list.
And that’s despite a US$72.5 billion dive in market-cap value from its November peak of US$89.8 billion. That peak represented a US$342.98 COIN price, but today the exchange’s stock is trading at just US$60.71.
The company recently reported a first quarter net loss of US$430 million, surprising many analysts at the time (although that was before the Terra LUNA debacle). It was the first loss in the company’s public history, following four quarters of significant profit.
But despite this, Coinbase CEO Brian Armstrong declared in the firm’s recent earnings call that he’s “never been more bullish on where we are as a company”, also suggesting the COIN stock is trading at “fire sale prices“.
The Fortune 500 nod will no doubt keep Armstrong’s positivity intact a little while longer, too. Does it mean much? You could argue it’s a milestone for the entire crypto industry, a boost of confidence for COIN investors, and further legitimisation that this crypto stuff is more than just “magic internet money”. (R… right?)
In its 68th year now, the list, published by Fortune magazine, ranks the 500 largest US companies by total revenues for their financial years. We probably don’t need to mention it’s considered a big deal due to its history and prestige and is generally perceived to be synonymous with high-quality corporates. (But we mentioned it anyway.)
Coinbase Global managed to slip into the 437th spot on the Fortune 500 list, due to its 2021 revenues of more than US$7.8 billion, a 513.7% annual gain, and drawing in 3,730 employees globally – another metric the list compilers consider.
It comes in ahead of Hasbro, Xerox, Hertz and Victoria’s Secret among others, in case that interests you. Oh, Chipotle Mexican Grill, as well.
American retail behemoth Walmart captured the top spot for the 10th year running, with US$572,754 million in revenue and a growth of 2.4%. Amazon ranked second, with US$469,822 and 21.7%, and Apple took out third with US$365,817 and 33.3%.
Walmart, incidentally, reportedly earlier this year submitted a total of seven patent filings that indicate it has plans to create its own digital currency and NFT collection. Although that’s probably still a “believe it when we see it” kinda deal.
In the other news, Sam Bankman-Fried, CEO of rival crypto exchange FTX has also just been featured in The Most Influential People of 2022 by TIME Magazine.
Bankman-Fried was described by the magazine as an “effective altruist” and acknowledged for his positive promotion of crypto and the industry in general, “using every tool imaginable to convince the public of its strengths”.