SoFi’s crypto relaunch brought in $121.6 million in Q1. Almost all of it went to costs

SoFi's relaunched cryptocurrency business generated $121.6 million in crypto transaction revenue during the first quarter, marking its first detailed financial disclosure since re-entering the crypto market late last year. However, this revenue was almost entirely offset by $120.7 million in related transaction costs, resulting in a net crypto transaction revenue of only $852,000. The company reported earnings of $0.12 per share on a GAAP basis. SoFi explained that it records crypto transactions on a gross basis as it acts as a principal, intermediating trades between third-party liquidity providers and customer accounts, similar to a brokerage model. As of March 31, SoFi had 239,509 crypto accounts, a figure representing all opened accounts rather than active traders. The company also launched the SoFiUSD stablecoin for enterprise payments in December and partnered with Mastercard for settlement capabilities. SoFi's own crypto holdings are considered immaterial and held as operational inventory.

(Source：CoinDesk)