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Coinbase's Revenue In The First Quarter Increased Nine Times Year-on-year As Bitcoin Price Skyrocketed

With the vast increase in Bitcoin, the US largest cryptocurrency exchanger revenue increased 9x year after year

Wednesday, 7 April 2021

/ by Ella Rose
It was reported that Coinbase, the largest cryptocurrency exchange in the United States, will be directly listed on the Nasdaq stock market next week. On April 6, Coinbase announced its operating results for the first quarter of this year. Affected by the wild rise of Bitcoin, the company's revenue in the first quarter increased nine times year-on-year.

The financial report shows that the revenue in the first quarter was 1.8 billion U.S. dollars, compared with only 190 million U.S. dollars in the same period last year (financial results are unaudited preliminary data). Net profit in the first quarter was between 730 million U.S. dollars and 800 million U.S. dollars, much higher than the 31.9 million U.S. dollars in the same period last year.

In terms of user scale, the company disclosed that it has 56 million authenticated trading users. Coinbase said that in the first quarter of this year, the trading platform had 6.1 million monthly active users.

For the whole year of this year, the company predicted three user growth patterns. The ideal situation is to increase to 7 million. If the cryptocurrency market is stable, there will be 5.5 million users. If the market drops, there will be 4 million monthly active users.

Coinbase said that it is expected that the business will achieve substantial growth in 2021. An important driving factor is the increased interest of institutional investors in cryptocurrency, which will drive the income of transactions and cryptocurrency preservation.

Last week, Coinbase announced that the US Securities and Exchange Commission had approved the company's shares to be listed for direct trading (non-IPO) on April 14. The company plans to register 115 million Class A common stocks, with the trading symbol "COIN" on the Nasdaq. In the direct listing model, listed companies will not issue new shares, mainly because existing shareholders sell their shares to new investors.

Although the new crown epidemic has impacted the economies of all countries, the Internet industry has performed well. Some technology startups are taking advantage of this opportunity to go public one after another, and Coinbase will become the latest one.

According to the previous offline market transaction conditions, the company was valued at US$68 billion. If fully diluted shares are taken into account, the company's market value is US$100 billion.

In the past seven months, software developer Snowflake, food delivery Doordash, homestay platform Airbnb, and youth gaming platform Roblox have successively gone public. The market value of these companies has ranged from US$40 billion to US$113 billion.

Coinbase's revenue in the first quarter increased nine times year-on-year.

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