Coinbase, one of the leading crypto exchanges, is now in the Fortune 500 list. It ranked second overall in revenue growth among companies on the list, at 514%, trailing only Moderna.
Coinbase, which is the largest U.S. cryptocurrency exchange, is the first crypto-focused company to be ever included in the Fortune 500.
Not only is that a huge accomplishment for Coinbase, but it is also a sing of the wide acknowledgement the crypto industry has gained recently.
Coinbase makes it to Fortune 500
Coinbase is on the one of the most prestigious ratings out there thanks to a very prolific previous year.
The exchange pulled in $7.8 billion in revenue for the 2021 fiscal year. It is ranking 437th on the Fortune 500 list, which was announced on Monday.
But there is an even more impressive fact.
But when ranked by revenue growth on the Fortune 500, Coinbase, at nearly 514%, trailed only Moderna (almost 2,200%) among top 500 firms. Given the fact Moderna makes profits from vaccine for COVID-19, that’s a rather impressive result for crypto.
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.
What contributed to Coinbase’s success?
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.
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.”
Yes, Coinbase is in Fortune 500 for a reason.
“Volatility is painful, and can be scary,” wrote Coinbase Chief Marketing Officer Kate Rouche in a blog post. “That said, volatility is also natural for emerging technological breakthroughs like crypto.”