Coinbase Global Inc, the US-based parent company of Bermuda’s newest crypto currency exchange, has reported a net loss of $79 million for the first quarter of 2023.

That included a $144 million restructuring expense.

Total revenue grew 23 per cent quarter-on-quarter to $773 million, and net revenue grew 22 per cent quarter-on-quarter to $736 million.

Adjusted ebitda was $284 million.

Announcing the results in a letter to shareholders, the company said: “Meanwhile, we maintained our longstanding commitment to operational and risk excellence throughout market turbulence in the traditional banking sector in Q1.

“We experienced no loss of corporate or customer funds and maintained business as usual operations. Despite losing two bank partners in Q1, we have on-boarded new partners, rebuilt redundancy layers and replaced the 24/7 instant settlement capabilities.”

Coinbase said it ended Q1 with $5.3 billion in total available $USD resources, which it defines as cash and cash equivalents, USDC and custodial account over funding.

This represents a decline of 3 per cent, or $172 million, compared with Q4.

Q1 total transaction revenue increased 16 per cent quarter-on-quarter to $375 million.

Consumer transaction revenue was $352 million in Q1, up 14 per cent quarter-on-quarter, and institutional transaction revenue was $22 million, up 67 per cent quarter-on-quarter.

Q1 total trading volume was $145 billion, flat quarter-on-quarter. The company noted that Q1 had two fewer days than Q4, or 2 per cent.

In Q1, the company said, the average crypto market cap increased 16 per cent and crypto asset volatility, a key driver of its trading volume, increased 8 per cent compared with Q4 but remained below 2020-2022 average levels.

Assets on platform increased 62 per cent quarter-on-quarter to $130 billion.

The company said: “AOP increased despite the traditional banking crisis in Q1 as our customers were increasingly adding assets onto our platform.

“While the primary driver was higher crypto asset prices — as crypto market cap increased 47 per cent quarter-on-quarter — we also experienced an increase in native units staked on our platform, net inflows into our custody platform and higher customer fiat balances.

“Retail customers continued to ‘hodl’ (hold on for dear life) their crypto assets on Coinbase at levels similar to Q4, which we believe indicates that retail customers, on average, maintain long-term conviction in crypto.”