Cash flows from operating activities
Net income (loss) .................................................................................................
$ 94,871 $ (2,624,949) $ 3,624,120
Adjustments to reconcile net income (loss) to net cash provided by (used
in) operating activities:
Depreciation and amortization .....................................................................
139,642 154,069 63,651
Other impairment expense ...........................................................................
18,793 26,518 500
Investment impairment expense .................................................................
29,375 101,445 —
Stock-based compensation expense ..........................................................
780,668 1,565,823 820,685
Restructuring stock-based compensation expense .................................
84,042 — —
Provision for transaction losses and doubtful accounts ..........................
11,059 (13,051) 22,390
Deferred income taxes ..................................................................................
(216,334) (468,035) (558,329)
Unrealized loss (gain) on foreign exchange ..............................................
17,190 28,516 (14,944)
Non-cash lease expense ..............................................................................
40,429 31,123 34,542
(Gain) loss on investments ...........................................................................
(50,121) 3,056 (20,138)
Fair value (gain) loss on derivatives ...........................................................
(41,033) 7,410 (32,056)
Gain on extinguishment of long-term debt, net .........................................
(117,383) — —
Crypto asset impairment expense ...............................................................
96,783 757,257 329,152
Crypto assets received as revenue .............................................................
(460,878) (470,591) (1,015,920)
Crypto asset payments for expenses .........................................................
298,255 383,221 815,783
Realized gain on crypto assets ....................................................................
(145,594) (36,666) (178,234)
Other operating activities, net ......................................................................
16,981 883 5,532
Net changes in operating assets and liabilities .........................................
326,206 (1,031,448) 141,438
Net cash provided by (used in) operating activities ...........................................
922,951 (1,585,419) 4,038,172
Cash flows from investing activities
Capitalized internal-use software development costs .................................
(63,202) (61,038) (22,073)
Business combinations, net of cash acquired ..............................................
(30,730) (186,150) (70,911)
Purchase of investments ..................................................................................
(11,822) (63,048) (326,513)
Purchase of assembled workforce .................................................................
— — (60,800)
Loans originated ................................................................................................
(586,691) (207,349) (336,189)
Proceeds from repayment of loans ................................................................
513,698 327,539 124,520
Assets pledged as collateral ............................................................................
(27,899) (41,630) —
Assets pledged as collateral returned ...........................................................
68,338 — —
Settlement of crypto futures contract .............................................................
(43,339) — —
Purchase of crypto assets held .......................................................................
(277,367) (1,400,032) (3,009,086)
Disposal of crypto assets held ........................................................................
461,325 969,185 2,574,032
Other investing activities, net ..........................................................................
3,081 (1,299) 2,280
Net cash provided by (used in) investing activities ............................................
5,392 (663,822) (1,124,740)
Cash flows from financing activities
Issuance of common stock upon exercise of stock options, net of
repurchases .......................................................................................................
47,944 51,497 217,064
Taxes paid related to net share settlement of equity awards .....................
(277,798) (351,867) (262,794)
Proceeds received under the ESPP ..............................................................
16,297 20,848 19,889
Customer custodial cash liabilities .................................................................
(274,822) (5,562,558) 6,691,859
Issuance of convertible senior notes, net ......................................................
— — 1,403,753
Issuance of senior notes, net ..........................................................................
— — 1,976,011
Purchase of capped calls .................................................................................
— — (90,131)
Repayment of long-term debt ..........................................................................
(303,533) — —
Assets received as collateral ...........................................................................
66,014 — —
Assets received as collateral returned ...........................................................
(64,952) — —
Proceeds from short-term borrowings ...........................................................
31,640 190,956 20,000
Repayments of short-term borrowings ..........................................................
(52,122) (191,073) —
Other financing activities ..................................................................................
— 3,679 433
Net cash (used in) provided by financing activities ............................................
(811,332) (5,838,518) 9,976,084
Net increase (decrease) in cash, cash equivalents, and restricted cash .......
117,011 (8,087,759) 12,889,516
Effect of exchange rates on cash, cash equivalents, and restricted cash .....
8,772 (163,257) (64,883)
Cash, cash equivalents, and restricted cash, beginning of period ..................
9,429,646 17,680,662 4,856,029
Cash, cash equivalents, and restricted cash, end of period .............................
$ 9,555,429 $ 9,429,646 $ 17,680,662
Supplemental disclosure of cash flow information
Cash paid during the period for interest ........................................................
$ 76,142 $ 82,399 $ 3,793
Cash paid during the period for income taxes ..............................................
39,122 35,888 68,614
Operating cash outflows for amounts included in the measurement of
operating lease liabilities ..................................................................................
14,730 14,528 20,061
Year Ended December 31,
2023 2022 2021
Table of Contents
Coinbase Global, Inc.
Consolidated Statements of Cash Flows
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
129