Coinbase plans to conductDPOon the Nasdaq on April 14, 2021, under the ticker COIN.
Coinbase is an American cryptocurrency platform founded in 2012. As of March 31, 2021, it is one of the largest crypto exchanges in the United States in terms of trading volume. Coinbase is part of the Coinbase Global holding.
Coinbase plans to spend $ 35 million on direct listing, and the company itself is estimated at about $ 100 billion. This is the first major public listing of a crypto company.
On Tuesday, the company released preliminary results for the first quarter of 2021. Coinbase reported that it had 56 million users during this period and had approximately 6.1 million monthly active customers. In the fourth quarter of 2020, a total of 46 million customers. … The company’s share in the cryptocurrency market is 11.3%.
Trading volume amounted to $ 335 billion. Quarterly profit is estimated at $ 730-800 million, with revenues of approximately $ 1.8 billion. This is significantly more than revenue of $ 1.3 billion and net profit of $ 322 million for the entire 2020. Significant growth of financial indicators contributed to the Bitcoin rally. Adjusted EBITDA was about $ 1.1 billion.
Coinbase’s main source of revenue is the fees that traders and cryptocurrency owners pay for transfers.
The company expects significant growth in 2021, driven by transaction and custody revenues, given the increased institutional interest in the cryptoasset class. However, institutional revenue is inherently unpredictable. Transaction revenue is currently highly correlated with the number of monthly users.
The company plans to spend $ 1.3-1.6 billion to scale activities and stimulate innovation.
If we talk about competitors, there are a lot of them. The most important rival of crypto platforms is Binance. Among payment operators – Visa and MasterCard, among online and mobile wallets – PayPal and others who accept cryptocurrency. Banks include JP Morgan Chase, Citibank, Bank of America and Capital One.