Coinbase reports first-quarter results; revenue stood at $1.8 billion, with net income estimated at $730–800 million.
The number of verified users rose to 56 million from 43 million in the fourth quarter of last year. The monthly active users reached 6.1 million.
Growth over last quarter
• Revenue —> 207.6%
• Net income —> 312.9%
• Traded volume —> 272.0%— Larry Cermak (@lawmaster) April 6, 2021
The user base is larger than that of Cash App from Square, as well as Robinhood, Venmo and eToro.
1/ The 56M user # is bigger than @CashApp & @Venmo and significantly larger than @RobinhoodApp & @eToro. That’s greater than every bank not named $JPM.
— John Street Capital (@JohnStCapital) April 6, 2021
This is the best quarter in the company’s history, a strong case for a valuation above $100 billion following a direct listing scheduled for April 14, according to many analysts.
Assets on the platform total $223 billion — about 11.3% of the total market capitalization, the company said. Of this amount, $122 billion is held by institutions, Coinbase stressed.
If you think a $100+ billion valuation for Coinbase is too high…
Remember they own 11.3% of the entire crypto market cap 🤯
I’d bet that this mcap will be multiples higher than it is now and that value will be directly monetized by CB who will be literally printing $$
— Jack Purdy (@jpurd17) April 6, 2021
If compared with the largest banks, it would rank 17th by assets in the United States.
Coinbase would now be the 17th largest bank in the United States, with $223 billion in assets.
— Documenting Bitcoin 📄 (@DocumentingBTC) April 6, 2021
Quarterly trading volume was $335 billion. Revenue fell to 0.56% of the volume.
As expected, the ratio between volume and revenue has declined from 0.67% to 0.56%. This is simply because way more volume also means way more market makers and fees get skewed lower. But the ratio is still higher than I expected, which means more retail has come! pic.twitter.com/n5ODf2ShfY
— Larry Cermak (@lawmaster) April 6, 2021
On April 1, the SEC approved the company’s S-1 filing. According to the document, the exchange will offer 114,850,769 shares. In the first quarter through March 15, the stock’s volume-weighted average price on the secondary market stood at $343.58 on Nasdaq Private Market.
In March, the company settled claims by the Commodity Futures Trading Commission (CFTC) related to falsification of trading activity data from January 2015 through September 2018. The fine amounted to $6.5 million. Analysts at the time cited this as the main reason for moving the direct listing to April.
In the run-up to the historic event, Coinbase hired former senior SEC official Brett Redfern and former Morgan Stanley top executive Ian Rooney.
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