American cryptocurrency exchange Coinbase is reported to be valued at over $100 billion amid $691 million in revenue, $141 million of which was net profit in the first 9 months of 2020. [Sources Coinbase 100B 141M]
Key Takes:
- Coinbase was valued at over $100B with $691M in revenue and $141M net profit in the first 9 months of 2020
- A recent share sale confirmed valuation and is significant for the crypto industry
- Coinbase revenue increased compared to 2019
- Went public via a direct listing on Nasdaq
- The surge in Bitcoin demand drove the sale of 127k shares at $373 per share, making Coinbase worth $100.23B
- Coinbase’s growth and revenue are still vulnerable to cryptocurrency price fluctuations
The recent market share sale valued the crypto exchange at over $100 billion. Since Facebook, Coinbase is the first American tech company to go public and the initial valuation is that much. Back in the day, Facebook was known to be the one, but the recent crypto adoption in the US has given other tech companies a chance to prosper as well. [Sources Coinbase 100B 141M]
According to the official documents shared by the investors, the American crypto exchange generated over $691 million in revenue in the first nine months of 2020. From that amount, $141 million was net income.Â
In 2019, the company wasn’t profitable as they registered a $30 million loss 2019, from the $530 million revenue. In January 2021, Coinbase launched a share sale via Nasdaq Private Markets, offering up to 1.8 million shares in weekly batches. This was done to help Coinbase determine a reference price for its public offering, which will be done via direct listing instead of IPO.
On January 29th, the first set of 75,000 shares was purchased for $200 per share, resulting in a valuation of nearly $54 billion for Coinbase. This was a significant increase compared to the company’s previous venture capital round in late 2018, which valued Coinbase at $8 billion. The subsequent two batches of shares were sold at $301 and $303 per share, respectively.
On February 19th, another group of 127,000 shares was sold for $373 per share. This sale brought the value of the company, called Coinbase, to $100.23 billion. This shows that people are interested in buying cryptocurrency, particularly Bitcoin, which has become very popular and valuable in 2021.
Coinbase has a bright future as it has plenty of funding and earned significant profits in the last quarter. Nevertheless, the company is still vulnerable to fluctuations in cryptocurrency prices and trading volume, which could negatively impact its growth and revenue.
Coinbase going public is a positive development for pro-cryptocurrency. It is worth noting that a tech company like Coinbase listing on a traditional exchange is a significant milestone for the crypto industry. [Sources Coinbase 100B 141M]
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