Crypto exchange Coinbase to reorganize priorities in 2024 to work ‘more efficiently’

Coinbase set to undergo a shift in operational efficiency as CEO Brian Armstrong introduces a new initiative called ‘Delete Week.’

In a blog post on Dec. 21, Brian Armstrong revealed he had sent a note to employees unveiling a new initiative designed to streamline the company’s business. To “operate even more efficiently in the new year.”

In the letter, Armstrong said the new concept called “Delete Week,” slated for Q1, 2024 between Jan. 8 and Jan. 12, will try to eliminate complexities such as features or products, lines of code, backend services, security measures, meetings, Slack channels, policies, internal and external documentation and many more.

Inspired by the philosophy that subtraction is a powerful tool for founders, with insights from board member Tobi Lütke, the co-founder and CEO of Shopify, Armstrong emphasized the initiative is just an experiment. However, the Coinbase CEO noted a successful Delete Week should result in a 10% reduction or more, highlighting the commitment to significant simplification.

“If you’re not sure whether it’s worth deleting something, my push is to try it, as it’s OK if we need to add it back later. If we don’t end up adding back at least 10%, we didn’t delete enough.”

Brian Armstrong

With the initiation of Delete Week, Coinbase appears to be optimizing its operations, given that its operating expenses still significantly surpass its net revenue. As of Q3, Coinbase’s total operating expenses stood at $754 million, while net revenue was $623 million.

In the Q3 shareholder letter, the exchange projected that by the end of 2023, technology, development, and general administrative expenses would amount to $575 million.

Following the announcement of the new initiative, Coinbase’s COIN shares experienced a surge of 3.8%, reaching $168.03. Consequently, the firm’s market capitalization reached the $40.2 billion mark, according to Google Finance.