Bank notes. Pixabay image.
This article presents the operating expenses of Coinbase Global, Inc. (NASDAQ: COIN).
These expenses include various costs, such as employee salaries and benefits, office rent and utilities, marketing and advertising, legal and professional services, technology and software, regulatory compliance, and other general administrative expenses.
Coinbase’s operating expenses consume a significant portion of its revenue and profit. Since 2022, Coinbase’s operating expenses have exceeded its net revenue, leading to losses for the company.
Therefore, understanding Coinbase’s operating expenses can give valuable insights into its financial well-being and long-term viability.
Let’s take a look.
For other key statistics of Coinbase Global, you may find more resources on these pages:
Users Count
Crpto Holdings
Revenue Breakdown
Transaction Revenue
Subscription & Services Revenue
Revenue By Region
Trading Volume
Employee
Cash Flow
Financial Health
Please use the table of contents to navigate this page.
Table Of Contents
Definitions And Overview
O2. Breakdown Of Coinbase Operating Expenses
O3. How Does Coinbase Spend Its Money
Results By Year
A1. Total Operating Expenses
A2. YoY Growth Rates Of Total Operating Expenses
Expenses To Revenue Ratio
B1. Operating Expenses To Net Revenue Ratio
B2. Operating Expenses To Total Revenue Ratio
Results By Category
C1. Operating Expenses By Category
Ratio By Category
D1. Operating Expenses By Category In Percentage
Conclusion And Reference
S1. Insight
S2. References and Credits
S3. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Total Revenue: Coinbase’s total revenue equals net revenue plus other revenue. Here is the equation for Coinbase’s total revenue:
Total revenue = Net revenue + Other revenue
Net revenue: Coinbase’s net revenue equals transaction revenue plus the subscription and services revenue. Here is the equation for the net revenue:
Net revenue = Transaction revenue + Subscription and services revenue
Coinbase’s transaction revenue is derived from transaction fees applied to spot trades executed by consumer and institutional customers on its trading platforms.
On the other hand, Coinbase’s subscription and services revenue is made up of several categories, including stablecoin revenue, blockchain rewards, interest income, custodial fee revenue, etc.
Investors interested in a comprehensive breakdown of Coinbase’s revenue may find more information on this page: Coinbase revenue breakdown.
Breakdown Of Coinbase Operating Expenses
Most of Coinbase’s operating expenses are from technology and development, general administration, transactions, and sales and marketing.
The following paragraphs explain each component of Coinbase’s operating expenses.
Transaction Expense
Coinbase defines transaction expenses as costs incurred to operate its platform, process crypto asset trades, and perform wallet services.
For example, these costs include account verification fees, miner fees for processing transactions on blockchain networks, fees paid to payment processors, and crypto asset losses due to transaction reversals.
Additionally, transaction fees include rewards paid to Coinbase users for staking activities.
Technology And Development
Coinbase defines expenses related to personnel, infrastructure, and development of its platform, including new products and services and acquired technology, as part of the technology and development costs.
Sales And Marketing
Sales and marketing expenses include costs associated with acquiring and retaining customers, advertising and marketing, and employee-related fees.
General And Administrative
General and administrative expenses refer to the costs incurred to support Coinbase’s business, including personnel-related fees for executive, customer support, compliance, finance, human resources, legal, and other support operations.
These expenses include software subscriptions for support services, facilities, and equipment, depreciation, amortization of acquired customer relationship intangible assets, gains and losses on disposal of fixed assets, legal reserves and settlements, and other general overhead.
How Does Coinbase Spend Its Money
Coinbase is a popular cryptocurrency exchange platform that allows users to buy, sell, and trade various digital currencies. As a cryptocurrency exchange provided, Coinbase generates revenue from various sources, such as transaction fees, exchange fees, and other fees associated with its services.
In terms of spending, Coinbase allocates its resources towards maintaining and expanding its platform, developing new products and services, marketing and advertising campaigns, and hiring and retaining talented employees.
Additionally, Coinbase invests a portion of its revenue into research and development, partnerships, and acquisitions to further improve its offerings and stay competitive in the market.
Overall, Coinbase’s spending focuses on providing a secure, user-friendly, and reliable platform for customers to access and trade cryptocurrencies easily.
Total Operating Expenses
Coinbase Global’s operating expenses have shown considerable variation across the five fiscal years presented. In FY2020, total operating expenses were $868.5 million, establishing the lowest level in the period.
In FY2021, expenses rose to $4,762.9 million, followed by a further increase in FY2022 to $5,904.6 million, which represents the highest operating cost recorded in the dataset.
The subsequent year, FY2023, recorded a decline in total operating expenses to $3,270.3 million, marking a significant reduction compared to the prior peak. In FY2024, expenses increased again to $4,328.6 million, though remaining below the FY2022 high.
Across the five‑year span, operating expenses moved from under $1 billion in FY2020 to nearly $6 billion in FY2022, before contracting and stabilizing at lower levels in FY2023 and FY2024. The data highlights a cycle of escalation, peak spending, and subsequent moderation.
This pattern demonstrates that Coinbase’s operating expenses have not followed a linear trajectory but instead reflect phases of sharp increases, reductions, and partial rebounds. The insight is that expense levels have fluctuated significantly, underscoring the importance of monitoring these shifts as part of broader financial oversight and planning.
YoY Growth Rates Of Operating Expenses
Coinbase Global’s operating expenses growth rates have shown significant variation across the four fiscal years presented. In FY2021, the growth rate was 448.4%, representing the most substantial increase in the period.
In FY2022, the growth rate moderated to 24.0%, still reflecting an upward movement but at a much lower pace compared to the prior year.
The following year, FY2023, recorded a negative growth rate of ‑44.6%, marking a contraction in operating expenses relative to the previous year.
In FY2024, the growth rate returned to positive territory at 32.4%, indicating an increase compared to FY2023 levels.
Operating Expenses To Net Revenue Ratio
The definition of Coinbase’s net revenue is available here: net revenue.
Coinbase Global’s ratio of operating expenses to net revenue has fluctuated across the five fiscal years presented. In FY2020, the ratio stood at 76.1%, indicating that operating expenses represented just over three‑quarters of net revenue.
In FY2021, the ratio declined to 64.8%, showing a lower proportion of expenses relative to revenue compared to the prior year.
The following year, FY2022, recorded a sharp increase in the ratio to 187.5%, meaning operating expenses exceeded net revenue during that period.
In FY2023, the ratio moderated to 111.7%, still above 100% but lower than the peak observed in FY2022.
By FY2024, the ratio decreased further to 68.8%, returning closer to the levels seen in FY2020 and FY2021.
Over the five‑year span, the ratio of operating expenses to net revenue has demonstrated significant volatility. The data highlights a cycle of relatively balanced expense levels in FY2020 and FY2021, followed by a sharp escalation in FY2022, a partial correction in FY2023, and a return to more moderate levels in FY2024.
Operating Expenses To Total Revenue Ratio
The definition of Coinbase’s total revenue is available here: total revenue.
Coinbase Global’s ratio of operating expenses to total revenue has shifted considerably across the five fiscal years presented. In FY2020, the ratio stood at 68.0%, indicating that operating expenses represented just over two‑thirds of total revenue.
In FY2021, the ratio declined slightly to 60.8%, reflecting a smaller proportion of expenses relative to revenue compared to the prior year.
The following year, FY2022, recorded a sharp increase in the ratio to 184.9%, meaning operating expenses exceeded total revenue during that period.
In FY2023, the ratio moderated to 105.2%, still above 100% but lower than the peak observed in FY2022. By FY2024, the ratio decreased further to 65.9%, returning closer to the levels seen in FY2020 and FY2021.
Across the five‑year span, the ratio of operating expenses to total revenue has demonstrated significant volatility. The data highlights a cycle of relatively balanced expense levels in FY2020 and FY2021, followed by a sharp escalation in FY2022, a partial correction in FY2023, and a return to more moderate levels in FY2024.
Operating Expenses By Category
As discussed earlier, Coinbase’s operating expenses are categorized into several types, such as transaction-related, sales and marketing, technology and development, general and administrative, restructuring, and other expenses. The definitions of each expense type are available here: operating expenses breakdown. Coinbase’s restructuring expenses are insignificant.
Coinbase Global’s operating expenses are primarily concentrated in three categories: Technology & Development, General & Administrative, and Transaction Expense. These categories consistently represent the largest portions of overall operating expenses across the five fiscal years.
In FY2020, Technology & Development and General & Administrative expenses were broadly comparable, at 271.7 million and 279.9 million respectively, with Transaction Expense at 135.5 million.
By FY2021, all three categories expanded significantly. Technology & Development rose to 1,291.6 million, General & Administrative reached 909.4 million, and Transaction Expense increased to 1,267.9 million, placing Technology & Development and Transaction Expense as the leading expense categories.
In FY2022, Technology & Development surged to 2,326.3 million, General & Administrative climbed to 1,600.7 million, and Transaction Expense stood at 629.9 million. Technology & Development became the dominant category, far exceeding the others.
FY2023 saw Technology & Development at 1,324.6 million, General & Administrative at 1,074.3 million, and Transaction Expense at 420.8 million, reflecting a moderation compared to the prior year.
In FY2024, Technology & Development recorded 1,468.3 million, General & Administrative 1,300.3 million, and Transaction Expense 897.7 million, showing renewed growth across all three categories.
Across the five‑year span, the top three operating expense categories have demonstrated both expansion and contraction, with Technology & Development consistently leading as the largest expense driver. General & Administrative has remained the second‑largest category, while Transaction Expense has fluctuated more sharply but still ranks among the top three.
The trajectory highlights that Coinbase Global’s cost structure is heavily weighted toward technology investment and administrative operations, with transaction‑related expenses also playing a significant role.
Operating Expenses By Category In Percentage
As discussed earlier, Coinbase’s operating expenses are categorized into several types, such as transaction-related, sales and marketing, technology and development, general and administrative, restructuring, and other expenses. The definitions of each expense type are available here: operating expenses breakdown. Coinbase’s restructuring expenses are insignificant.
Coinbase Global’s operating expenses, expressed as a percentage breakdown, are consistently concentrated in three categories: Technology & Development, General & Administrative, and Transaction Expense. These categories dominate the expense structure across the five fiscal years.
In FY2020, General & Administrative accounted for 32.2%, Technology & Development for 31.3%, and Transaction Expense for 15.6% of total operating expenses.
In FY2021, Technology & Development represented 27.1%, General & Administrative 19.1%, and Transaction Expense 26.6%, maintaining their positions as the leading categories.
By FY2022, Technology & Development rose to 39.4%, General & Administrative stood at 27.1%, and Transaction Expense was 10.7%, reinforcing Technology & Development as the largest category.
In FY2023, Technology & Development increased further to 40.5%, General & Administrative reached 32.9%, and Transaction Expense was 12.9%, showing continued dominance of these three categories.
In FY2024, Technology & Development accounted for 33.9%, General & Administrative 30.0%, and Transaction Expense 20.7%, again forming the top three categories of operating expenses.
Across the five‑year span, Technology & Development has consistently been the largest contributor to operating expenses, peaking above 40% in FY2023 before moderating slightly in FY2024. General & Administrative has remained the second‑largest category, with its share rising steadily over time. Transaction Expense, while more variable, has consistently ranked among the top three categories, with its share increasing notably in FY2024.
The data highlights that Coinbase Global’s expense structure is heavily weighted toward technology investment and administrative operations, with transaction‑related costs also playing a significant role. The proportions have shifted year to year, but the top three categories have remained stable, underscoring their importance in shaping the company’s overall operating expense profile
Insight
Across the five fiscal years reviewed, Coinbase Global’s operating expenses have shown significant volatility both in absolute terms and relative to revenue. Ratios of operating expenses to net and total revenue highlight periods where costs exceeded revenue, underscoring the importance of expense discipline. The breakdown by category consistently reveals that Technology & Development, General & Administrative, and Transaction Expense are the dominant drivers of overall costs, together accounting for the majority of operating expenses each year.
While the proportions of these categories have shifted, Technology & Development has remained the largest contributor, reflecting the company’s emphasis on building and maintaining its platform. General & Administrative expenses have steadily represented a substantial share, while Transaction Expense has fluctuated but consistently ranked among the top three categories. Other categories such as Sales and Marketing, Crypto Asset Impairment, and Restructuring have played smaller, though sometimes notable, roles in shaping the expense profile
Credits and References
1. All financial figures presented in this article were obtained and referenced from Coinbase Global, Inc.’s annual and quarterly filings which are available in Coinbase Investor Relations.
2. Pixabay images.
Disclosure
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