Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Total net revenue for the year ended December 31, 2022, declined to $2.9 billion from $7.4 billion in 2021.
  • Addition of stablecoin revenue as a meaningful revenue contributor, with $80.5 billion in custodial fiat currencies and cryptocurrencies.
  • Gross impairment charges on strategic investments decreased from $101.4 million in 2022 to $0 in 2023.
  • Introduction of regulatory changes impacting the cryptoeconomy, with potential compliance costs and risks.
  • Crypto asset holdings impairment charges decreased from $757.3 million in 2022 to $96.8 million in 2023.
  • Increased focus on safeguarding customer assets, including proprietary technology and operational processes.
  • Expansion of product offerings and services, with a focus on reducing operating costs and optimizing efficiencies.
  • Disclosure of legal actions and settlements with state securities regulators, impacting staking services provided.
  • Mention of potential impacts on business, operating results, and financial condition due to regulatory scrutiny and reputational harm.
  • Discussion of uncertainties surrounding the classification of crypto assets as securities under applicable laws.

Full Text Changes in Most Recent 10-K

Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.

To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1679788&owner=exclude

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