Brian Armstrong. Source: Screenshot of a video, CNBC/YouTube
As major cryptocurrency exchanges step up efforts to ensure their stability for clients and investors, Coinbase CEO Brian Armstrong has revealed that his company holds cryptocurrency reserves that include around 2 million BTC worth approximately 39.900 billion dollars.
“We have about 2 million BTC. ~€39.9 billion as of September 30,” the CEO tweeted, referring to the financial results disclosed by the company for the third quarter of this year.
“We must all come together to responsibly build this industry into the future. Beware of fake news," according to Armstrong.
The businessman also referred his subscribers to the Coinbase shareholder letter for the same period of 2022.
Amid a downturn in the crypto market, Coinbase reported disappointing results for the July-September 2022 period, with the company posting a net loss of around €545 million.
“The third quarter was mixed for Coinbase. Transaction revenue was significantly impacted by stronger macroeconomic and crypto headwinds, as well as offshore transaction volume movement,” Coinbase said in the statement.
“During this time, we have seen strong growth in our subscription and services revenue, driven by our involvement in the USDC ecosystem and increased engagement activity. Although macroeconomic headwinds are out of our control, we continue to focus on factors within our control: reducing our focus on products to deliver amazing customer experiences and reducing our operating expenses,” according to the exchange.
Coinbase saw its transaction revenue fall 44% quarter-over-quarter to €366 million. However, on a more optimistic note, subscription and service revenue for the exchange increased 43% sequentially to €211 million, driven by higher interest income. Net income for the third quarter was €576 million, 28% less than the second quarter,” the letter reads.
Armstrong's latest announcement comes a day after rival Coinbase exchange FTX collapsed and filed for bankruptcy. As FTX moves forward with its voluntary Chapter 11 proceeding, Bankman-Fried, who is the company's founder and former CEO, is working to raise new capital in a bid to restore integrity to the collapsed company's customers. despite bankruptcy filings.
The controversial businessman announced that he would "meet in person" with potential investors and regulators to do what they could for clients. “And after that, the investors. But first, the customers," Bankman-Fried said in a tweet.
That said, the criticism the former FTX CEO has received for his irresponsible handling of the failing stock market could make it very difficult for Bankman-Fried to convince investors to inject significant funds into its future ventures.