Coinbase reports estimated first-quarter revenue of $ 1.8 billion, up to nine times

In preparation for its Nasdaq debut next week, cryptocurrency exchange Coinbase said Tuesday that first-quarter revenue rose about nine from last year, driven by a historic rise in the price of bitcoin.

Revenue for the period rose to about $ 1.8 billion, from $ 190.6 million in the same quarter last year, according to Coinbase in a press release, which added that the results are preliminary and unaudited. Net income grew from $ 730 million to $ 800 million, up from $ 31.9 million a year ago. Coinbase said it has 56 million verified users.

The company is organizing an online broadcast to discuss its financial results starting at 4:30 p.m., Eastern Time.

Coinbase is on the verge of becoming the latest technology company to hit the market with a massive valuation, capitalizing on the continued growth of the sector despite the wider economic struggles caused by the coronavirus pandemic. Trade in the private market has valued the company at $ 68 billion, a figure that rises to $ 100 billion when a fully diluted stock count is taken into account.

For the past seven months, software provider Snowflake, the food delivery app DoorDash, the room sharing site Airbnb and the gaming platform Roblox have been public. Its market limits are currently between $ 40 million and $ 113 million.

Coinbase is unique because its increase in valuation reflects the trajectory of major cryptocurrencies. Bitcoin has risen by around 700% in the last year, while etherum has risen by more than 1,100%.

Coinbase said last week that the SEC approved the direct listing, which will be set for April 14th. The company has said it plans to register about 115 million Class A common stock shares, which will be marketed under the COIN symbol. In a direct listing, the issuing company waives the sale of new shares and instead allows existing stakeholders to sell their shares to new investors.

Although today Coinbase relies heavily on attracting users who store and market the two major cryptocurrencies, the company is committed to developing a larger ecosystem of cryptocurrency-related assets in the coming years.

“We expect significant growth in 2021 driven by revenue from transactions and custody given the increase in institutional interest in the class of cryptographic assets,” the company said in the statement.

In the first quarter, Coinbase said it had 6.1 million monthly transaction (MTU) users. For the full year, three possible scenarios are set that will determine revenue, as much of your business is derived from these transactions.

Rising market values ​​could lead to MTU of 7 million, Coinbase’s most aggressive estimate. In the middle range, assuming a flat cryptography market, MTUs would reach 5.5 million. And the most conservative forecast, if prices fall, is 4 million MTU.

– CNK’s MacKenzie Sigalos contributed to this report.

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