Last week Coinbase announced that SEC approved its direct listing from April 14 on Nasdaq Market. According to Coinbase, the plan is to register approximately 115 million shares of Class A common stock. These stocks will trade under the ticker symbol COIN.
Coinbase is preparing for its debut on the Nasdaq market. According to the company, compared to last year, Coinbase’s revenue hit an enormous rise, nine-fold, driven by a historic rally in bitcoin’s price.
However, even ahead of Nasdaq listing, Coinbase had its first earnings call on Monday and hit records. After the Q1 earnings call, the company revealed that the revenue surpassed its $190 million gain from the same time last year. From $190.6 million, the revenue jumped to $1.8 billion in the same quarter a year earlier.
The company attributed a piece of this volcanic growth to Bitcoin’s bull market. The U.S. exchange calculated net income between $730 million and $800 million and an EBIDTA of about $1.1 billion.
In the first quarter, the bull market’s monthly active users grew from 1.3 million to more than 6 million users, and the crypto assets on the platform rose 1200%, from $17 billion to $223 billion.
Coinbase has a bright future ahead
Coinbase is becoming the latest tech company to hit the market with a massive valuation. Even in the coronavirus pandemic, which caused some complicated economic struggles, Coinbase kept growing in the sector.
Trading on the private market has valued the company at $68 billion, which increases to about $100 billion when factoring in a fully diluted share count.
Coinbase is unique because its valuation increase reflects the trajectory of the top cryptocurrencies. Bitcoin is up about 700% in the past year, while ethereum has flown by more than 1,100%.
Coinbase is strongly reliant today and attracting users who store and trade the two major cryptocurrencies. The company is betting on developing a larger ecosystem of crypto-related assets in the coming years.
In the first quarter, Coinbase announced that it had 6.1 MTUs-monthly transaction users. According to the analysts, Coinbase’s future year could be developed in three different scenarios that will determine revenue: with the roughest and the most aggressive estimate, the rising market values could result in 7 million MTUs. In the middle range, considering a flat crypto market, MTUs could settle at 5.5 million. Moreover, the most conservative prediction, if the price drops, is 4 million MTUs.