Analysis: Coinbase is projected to bring in $456 million in profits in 2018 despite the bear market

According to a document reviewed by Bloomberg, Coinbase is projecting to bring in $1.3 billion in revenue and $456 million in profits in 2018. Last year, Coinbase generated $923 million in revenue and $380 million in profit. This means that the revenues are projected to increase by almost 40% while profits are to increase by 20%. All this despite a bear market in cryptocurrencies that has seen prices fall by about 70% in 2018.

The profit margin was approximately 41% last year and is estimated to be approximately 35% this year (see table). The decrease in profit margins could be a result of an increase in salary expenses. Just this year, Coinbase has doubled the amount of staff from 250 to more than 500.