Coinbase, the largest U.S. cryptocurrency exchange, has become the first crypto-focused company to be included in the Fortune 500.
The exchange pulled in $7.8 billion in revenue for the 2021 fiscal year, ranking 437th on the list, which was announced on Monday. But when ranked by revenue growth, Coinbase, at nearly 514%, trailed only Moderna (almost 2,200%) among top 500 firms. The bulk of Coinbase’s revenue is from trading fees.
Both Coinbase and Moderna were among the companies that “thrived under the freakish circumstances of COVID,” noted Fortune’s editor in chief, Alyson Shontell.
Coinbase also capitalized on the rising popularity of cryptocurrencies. Before the total crypto market cap peaked above $3 trillion in November, Coinbase marketed itself everywhere from the NBA to the world of esports as a go-to destination for investing in digital assets.
As of now, Bitcoin is at its lowest price since Coinbase (COIN) went public in April 2021, and the company is feeling the brunt of it. Shares are down over 80% since November’s market high, while Q1 revenue registered less than half the previous quarter’s sum. Monthly transacting users also fell by over 2 million during that time.
But disappointing first-quarter results aren’t unique to Coinbase. Block’s Q1 Bitcoin purchase revenue fell by 51% year over year, and by about $200 million from the previous quarter.
Coinbase isn’t showing worry, however. The company’s pinned tweet from last Wednesday mocks those who would consider the crypto industry “dead.”
“Volatility is painful, and can be scary,” wrote Coinbase Chief Marketing Officer Kate Rouche in a blog post that same day. “That said, volatility is also natural for emerging technological breakthroughs like crypto.”