In anticipation of its direct listing, Coinbase reported a staggering record for its first-quarter earnings this year. The exchange raked in $1.8 billion in the first three months of 2021. This was revealed on Tuesday after the firm declared that it made about $800 million in net profit.
In retrospect, the leading exchange has had an outstanding performance in the last one year. Contrasting its first-quarter revenue to that of last year’s $190.6 million, that’s about a 900% spike over one year. This is largely due to the increasing interest of institutional clients in cryptocurrency.
The assets under management (AUM) of Coinbase rose from $90 billion to $223 billion in the first quarter. Based on the report, investments from their institutional investors account for roughly $122 billion of the AUM.
The active users on the platform have also surged by 117%, up from 2.8 million last year December. Also, Coinbase’s trading volume has soared by over 1000% from $30 billion in Q1 2020 to about $335 billion in Q1 2021.
Furthermore, the number of verified users have increased to 56 million this first-quarter – about 65% spike from last year’s record. The company is expected to experience immense growth this year, with the heightened interest in crypto.
Coinbase’s Direct Listing: What to Expect
The company’s IPO is scheduled for April 7 and will trade on Nasdaq under the ticker COIN. In an interview with Forbes, Olaf Carlson-Wee believes the market cap of Coinbase will touch $100 billion very soon. Currently, the valuation of the exchange sits at $70 billion.
Coinbase will go through a direct listing by selling 114.9 million shares directly to the public. Following the outstanding first-quarter performance, the price per share could soar to $343.58 – based on estimates.