Revolut, a fintech company, has been struggling to turn a profit, despite customers infatuation with cryptocurrencies. The company reported a loss of £24.3m in Q1 2018, up from £11.7m in Q1 2017, with UK revenue falling by 21% to £3.9m. The company, which recently reported a loss of £106m for 2017, blames this on the decline in the value of cryptocurrencies.
Revolut has been in the news recently after it was revealed that the UK based online banking service has been bleeding money in recent months. A report found that Revolut ended the year by losing £4.7million in December but has been piling losses ever since. Revolut lost £1.3million in January and another £3.2million in February, as well as losing £18.3million in March. So, has Revolut’s losses really been less than expected or are there some other issues at the company?
Revolut, a digital banking service headquartered in London, has been the talk of the town for the past few weeks. The company, founded in 2015 by Nikolay Storonsky, has been making headlines for its public relations blunders, not just in terms of its botched launch, but also for its recent series of financial losses.. Read more about future of cryptocurrency 2021 and let us know what you think.Summary of the situation
– Revolut paid almost double in crypto-currency fees by 2020
– The UK company’s financial services business accepts 40 crypto-currencies.
Fintech company Revolut has suffered financial losses. These losses nearly doubled in 2020, even as cryptocurrencies were experiencing an incredible boom.
Former Lehman Brothers traders Nick Storonski and Martin Gilbert founded the company. Former cryptocurrency trader admits to making £39m Storonsky’s profits are attributed to cryptocurrencies and high demand for services in 2020. However, the financial sector is going through a difficult period.
Revolut generated more than 34% of its 222 million euro revenue from business services. The bitcoin bubble continued to grow earlier this year, when it was valued at $28,500. The value of BTC has never stopped rising and reached an all-time high of $64,000 in April 2021.
Revolut has a significant tax loss
Although Revolut’s outlook for cryptocurrencies seemed favorable, there were more losses than gains. The IRS took down this amazing project that made money from cryptocurrencies.
On average, the finance company had to pay EUR 207 875 in taxes. This figure shows a significant loss, larger than in 2019, when the company paid 107,680 euros in taxes.
Mikko Salovaara, chief financial officer, said the company has an improved fiscal forecast for 2021. However, he did not provide figures for tax payments in the first six months of this year. Salovaara said only that the company will make up for its stock market losses in 2019 and 2020.
Company believes in cryptocurrencies
Revolut, the UK’s leading financial services company, launched in 2015 as a prepaid card focused on cryptocurrencies. This company is very valuable to UK investors, whose net assets have reached $5.5 billion.
This boom allowed Revolut to expand into 34 countries. The business includes financial services for businesses, lenders, investors, etc. However, unlike British banks, it relies on virtual currencies rather than fiat currencies.
Revolut’s cryptocurrency services only show 15-20% of their actual revenue. But you can use it to buy and sell up to 40 tokens, including bitcoin, ether and dogecoin. However, the company’s success in the new year may be affected by recent government actions. Regulators have tried to destroy the cryptocurrency market by equating it with a greater tolerance for fraud and money laundering. As a result, many banks have refused to trade cryptocurrencies in the UK.
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