2022 was a tough year for Bitcoin companies in the Netherlands and abroad. But how big was the blow really? Now that companies in the Netherlands have presented their annual financial statements for 2022, this is finally being made transparent.
Crypto Insiders looked at the financial statements of companies like Bitvavo, Anycoin Direct and others to get a sense of the damage 2022 has wrought. We also asked them for an answer.
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Bitvavo: Small profit with a golden edge
Starting with the largest exchange in the Netherlands: Bitvavo. The company had a relatively good year in 2022, although it was overshadowed by the ongoing Genesis and Digital Currency Group (DCG) issues. Partly for this reason, Bitvavo's final profit took a significant hit in 2022.
But what also hurt the results was the mood among Dutch crypto traders. Bitvavo saw a significant decline in revenue from trading costs. In 2021 it was still 213.2 million euros. A year later, Bitvavo recorded a 55% decline in sales in this area to €96.9 million.
Among other things, the decline in income from trading costs had a significant impact on the bottom line. While the company achieved a net profit of 139 million euros in 2021, this fell by 99.7% to 382,655 euros in 2022. However, an important, golden remark must be made here.
The main reason why profits were so low is the problem mentioned above. Bitvavo has 280 million euros outstanding with the American crypto lending platform Genesis. This platform was one of the dominoes that fell due to the bear market in 2022. Bitvavo is currently still negotiating to get (part of) this amount back.
However, she does not expect to be able to get the full amount back. Therefore, Bitvavo had to take a write-off of 55 million euros on the outstanding debt. In a response to Crypto Insiders, Bitvavo explains: “With the write-down in 2022, Bitvavo has already covered the possible loss from current results.”
Despite the seemingly dramatic 99.7% drop in profits, Bitvavo still made it through 2022 relatively well.
Bitcoin Meester (now BCM): Equity is falling
Bitcoin Meester, one of the most well-known Bitcoin (BTC) brokers in the Netherlands, has been mentioned in crypto news several times recently. This included both negative and positive news.
Last year, for example, the company lost a lawsuit that forced it to pay compensation to a customer. However, there was very positive news later in 2023. The company was acquired by international crypto giant Kraken. But of course this all took place after 2022.
The 2022 annual report is less extensive compared to Bitvavo's. For example, the company does not provide information about exactly how much revenue it generated from selling crypto. No profit or loss figures are announced either.
It shows that equity fell from €1.8 million to €605,611 in 2022. This could be an indication that the company had to dig into its own pockets in 2022 due to disappointing results.
Crypto Insiders reached out to BCM to get more clarity on the findings. Unfortunately, the company did not want to provide any information about this.
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Anycoin Direct is on its way
Anycoin Direct's annual financial statements also show a significant decline in 2022. The equity fell from 6.6 million euros in 2021 to 3.03 million euros in the following year. This could be an indication that financial results were negative in 2022.
However, we don't know for sure. Like BCM, Anycoin Direct does not provide insight into specific profit or loss numbers. However, from a more global observation, it can be seen that the results in 2022 were negative and therefore a need for loans arose. The company provides clarity in a response to questions from crypto insiders.
Anycoin Direct claims to have known in advance that 2022 and 2023 would be difficult years. The bear market has affected almost everyone in the crypto sector:
“To prepare for the coming years, we have focused on new feature development and existential security,” said Anycoin Direct.
The company has now taken a significant step abroad. It has received a license from the German regulator, allowing it to enter the market of our eastern neighbors. According to Anycoin Direct, this is also a sign of the company's financial health because:
“Receiving the BaFin license in Germany confirms our financial health. To obtain this license, we must demonstrate that consumers' funds are safe. BaFin has thoroughly assessed our reserves, our financial position, our business processes and our future plans.”
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Foreign Bitcoin exchanges also had a difficult time
The numbers were also negative on major international exchanges such as Binance and Coinbase. Trading volumes are significantly larger on these exchanges, which means that the impact of the bear market is also much larger in absolute terms.
Coinbase, the major American listed crypto exchange, saw a 50% decline in trading volume in 2022. According to Fortune, the company suffered a total loss of up to $2.6 billion.
But Coinbase also used the bad time to expand its momentum. It was recently reported on Crypto Insiders that the exchange has big plans and is eyeing the European market, among others.
Then of course there is the yellow giant Binance. The world's largest crypto exchange, which is no longer active in the Netherlands, is not a listed company. So we don't have exact numbers.
Fortune made an estimate based on a number of data points. According to the researchers, trading volume fell from $31.7 trillion in 2021 to about $23.3 trillion in 2022, which may mean that transaction fee revenue also fell significantly.
The fact that the company subsequently had to withdraw from, among other things, the Netherlands and was confronted with serious allegations and a resulting settlement will not help the company recover from the bear market. However, it is important to emphasize that it is not known exactly what Binance's financial health is.
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