Cryptocurrency Exchange Coinbase and Crypto’s First IPO

The largest cryptocurrency exchange in the U.S. will make history on Wednesday as the first company specializing in cryptocurrencies to launch an initial public offering (IPO). Coinbase may have a valuation of more than $100 billion. It will begin trading on the Nasdaq under the ticker symbol COIN in a direct listing vs. a traditional IPO. The crypto’s first IPO comes as bitcoin hover over $60,000 advancing 106% this year as of Monday.

Coinbase is a platform used to trade more than 50 cryptocurrencies, including Bitcoin. At the moment, the company has 56 million users and serves 7,000 institutional customers. They do this with 115,000 ecosystem partners in more than 100 countries.

This cryptocurrency exchange also provides a digital wallet for investors to store their cryptocurrencies in. The major cryptocurrency exchange also offers a service called Coinbase Pro, which features complex charting and more complex trading options. This platform also ensures secure transactions through two-step verification, biometric logins, insurance in the event the exchange is breached, FDIC-insured USD balances, as well as standard encryption for digital wallets.

Interesting facts about Coinbase

This cryptocurrency exchange achieved phenomenal results over the years. As of December 31, 2020, it generated more than $3.4 billion in total revenue since its inception.

For the fiscal year ending December 31, 2020, the company reported revenue of $1.14 billion, up 139% from 2019, and net income of $322 million. Interestingly, Adjusted EBITDA also experienced substantial growth, jumping to $527 million compared to $24.3 million in 2019.

Several days ago, Coinbase reported preliminary results for the first quarter, which ended on March 31. The company also provided an outlook for the full year. The U.S. largest cryptocurrency exchange reported revenue of approximately $1.8 billion, net income of approximately $730 million to $800 million, and the Adjusted EBITDA of approximately $1.1 billion.

Coinbase also reported 6.1 million monthly transacting users. The trading volume reached $35 billion and the company’s assets surpassed $223 billion. That included $123 billion in assets from institutions.

Looking ahead at the full year of 2021, the company expects monthly transacting users to range between 4 million and 7 million. The number of monthly transacting users depends on crypto market capitalization as well as crypto-asset price volatility.