Coinbase is on its way for a direct listing on the Nasdaq exchange under ticker COIN. It has filed a S-1 registration statement that serves as an important hallmark before it goes public. It also provides a treasure trove to investors about Coinbases’s finances.
Here are some notable quotes from the S-1:
“As of December 31, 2020, the total value of crypto assets on our platform represented 11.1% of the total market capitalization of crypto assets, increasing from 8.3%…[from 2019]”.
“We have grown quickly and in a capital-efficient manner since our founding. For the years ended December 31, 2020 and December 31, 2019, we generated total revenue of $1.3 billion and $533.7 million, respectively, net income (loss) of $322.3 million and $(30.4) million, respectively, and Adjusted EBITDA of $527.4 million and $24.3 million, respectively”
The centralized exchange helped cater to both Microstrategy and Tesla in buying billions of BTC. In 2020, most of their revenue came from retail investors, but as more institutions use Coinbase, they will expand that institutional trust to become even more profitable.
Moreover, the firm could be valued at over $100.3 billion as the Nasdaq Private Market showed shares trading $373 on the secondary market. In my opinion, $100.3 billion evaluation based on a total 2020 revenue of $1.3 billion and net profit of only $322.3 million is too rich for my blood, but Coinbase will undoubtedly play a major role in helping BTC and other cryptocurrencies gain more dominance and institutional trust.
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