Coinbase Global, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Coinbase Global, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Coinbase Global, Inc. (COIN) filed a Annual Report (10-K) with the SEC on February 15, 2024. Coinbase Global, Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's central index key is 0001679788. Coinbase Global, Inc. is incorporated in Delaware. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking Coinbase Global, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Coinbase's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors to assess the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for understanding Coinbase's position in the cryptocurrency market, its regulatory compliance, and its ability to navigate market volatility.

Risk Assessment

Risk Level: — Coinbase Global, Inc. shows moderate risk based on this filing. The company operates in the highly volatile cryptocurrency market, which is subject to significant regulatory scrutiny and rapid technological changes, posing inherent risks to its business model and financial stability.

Analyst Insight

Investors should review the detailed risk factors and financial disclosures in the 10-K to understand the potential impacts of market volatility and regulatory changes on Coinbase's future performance.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 2024-02-15 — Filing Date (Submission Date)
• 0001679788 — Central Index Key (Filer Identifier)

Key Players & Entities

• Coinbase Global, Inc. (company) — Filer
• 2023-12-31 (date) — Fiscal Year End
• 2024-02-15 (date) — Filing Date
• 0001679788 (company) — Central Index Key
• DE (jurisdiction) — State of Incorporation

FAQ

Industry Context

Coinbase operates as a cryptocurrency exchange platform, a sector characterized by rapid innovation, significant regulatory oversight, and high market volatility.

Regulatory Implications

The cryptocurrency industry is subject to evolving regulatory frameworks globally, which can impact Coinbase's operations, compliance requirements, and market access.

What Investors Should Do

1. Review Coinbase's 2023 financial statements for revenue streams, profitability, and asset management.
2. Analyze the risk factors section to understand potential challenges in the cryptocurrency market and regulatory landscape.
3. Examine disclosures related to customer assets and platform security to assess operational risks.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-15: Filing Date — Date Coinbase Global, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.00001 — which registered Class A common stock, $0.00001 par value per share COIN The Nasdaq Sto

Filing Documents

• coin-20231231.htm (10-K) — 3647KB
• exhibit101110kq42023.htm (EX-10.11) — 27KB
• exhibit21110kq42023.htm (EX-21.1) — 12KB
• exhibit23110kq42023.htm (EX-23.1) — 2KB
• exhibit31110kq42023.htm (EX-31.1) — 11KB
• exhibit31210kq42023.htm (EX-31.2) — 11KB
• exhibit32110kq42023.htm (EX-32.1) — 6KB
• exhibit32210kq42023.htm (EX-32.2) — 6KB
• exhibit97110kq42023.htm (EX-97.1) — 68KB
• coin-20231231_g1.jpg (GRAPHIC) — 292KB
• 0001679788-24-000022.txt (&nbsp;) — 18232KB
• coin-20231231.xsd (EX-101.SCH) — 122KB
• coin-20231231_cal.xml (EX-101.CAL) — 162KB
• coin-20231231_def.xml (EX-101.DEF) — 643KB
• coin-20231231_lab.xml (EX-101.LAB) — 1319KB
• coin-20231231_pre.xml (EX-101.PRE) — 992KB
• coin-20231231_htm.xml (XML) — 2857KB

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 85

Cybersecurity

Item 1C. Cybersecurity 85

Properties

Item 2. Properties 87

Legal Proceedings

Item 3. Legal Proceedings 87

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 87 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 88

[Reserved]

Item 6. [Reserved] 89

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 90

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 117

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 120

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 185

Controls and Procedures

Item 9A. Controls and Procedures 186

Other Information

Item 9B. Other Information 187

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 187 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 188

Executive Compensation

Item 11. Executive Compensation 188

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 188

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 188

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 188 Part IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 188

Form 10-K Summary

Item 16. Form 10-K Summary 191

Signatures

Signatures 191 1 Glossary to the Cryptoeconomy Throughout this Annual Report on Form 10-K, we use a number of industry terms and concepts which are defined as follows: Address : An alphanumeric reference to where crypto assets can be sent or stored. Bitcoin : The first peer-to-peer electronic cash system of global, decentralized, scarce, digital money as initially introduced in a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto. Block : Synonymous with digital pages in a ledger. Blocks are added to an existing blockchain as transactions occur on the network. Miners are rewarded for "mining" a new block. Blockchain : A cryptographically secure digital ledger that maintains a record of all transactions that occur on the network and follows a consensus protocol for confirming new blocks to be added to the blockchain. Cold storage : The storage of private keys in any fashion that is disconnected from the internet. Common cold storage examples include offline computers, USB drives, or paper records. Crypto : A broad term for any cryptography-based market, system, application, or decentralized network. Crypto asset or token : Any digital asset built using blockchain technology, including cryptocurrencies, stablecoins, and security tokens. Cryptocurrency : Bitcoin and alternative coins, or "altcoins," launched after the success of Bitcoin. This category of crypto asset is designed to work as a medium of exchange, store of value, or to power applications and excludes security tokens. Cryptoeconomy : A new open financial system built upon crypto. Dapps : Decentralized applications, or Dapps, are applications that run on a decentralized network, typically using blockchain technology. DeFi : Short for Decentralized Finance. Peer-to-peer software-based network of protocols that can be used to facilitate traditional financial services like borrowing, lending, trading derivatives, insurance, and more through smart contracts.

Business

Item 1. Business Coinbase Overview Our mission is to increase economic freedom in the world. We are working to update the century-old financial system by providing a trusted platform that makes it easy for our customers to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activities. Onchain activities are interactions with the blockchain that usually take place in a broad category of blockchain-powered technologies, including self-custody wallets, decentralized apps and services, and open community engagement platforms. Our Business We offer a suite of products and services that are designed to meet the distinct needs of our three customer groups: Consumers - individual retail user customers seeking to discover or trade crypto assets and engage in onchain activities. Institutions - businesses that include market makers, asset managers, hedge funds, banks, wealth platforms, registered investment advisors, payment platforms, and public and private corporations. Developers - developers, creators, merchants, crypto asset issuers, organizations and financial institutions, and other groups building decentralized protocols, applications, products, or other services onchain. When signing up for an account on our platform, among other requirements, consumer and institutional customers must certify that they are at least eighteen (18) years of age (if a natural person), agree to a user agreement, satisfy the requirements of our robust know-your-customer ("KYC") program, and have read our privacy policy. Our platform serves as a trusted and compliant gateway to the onchain economy and enables our users to engage in a wide variety of activities, including discovering, trading, staking, storing, spending, earning, and using their crypto assets in both our own proprietary and third-party product experiences enabled by access to decentralized applications. Ou

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