A week to its much-awaited Initial Public Offer, Coinbase the most sort after crypto exchange revealed it expected to report a Q1 profit of between $730 million to $800 million, more than double what it made last year.
In its statement on its preliminary results, the pioneer crypto exchange reported that it was anticipating to post revenue of $1.8 billion in Q1 2021, surpassing last year’s total revenue of $1.3 billion.
For the first quarter of 2021, Coinbase currently expects the following for the 3 months ended March 31, 2021:
- Verified Users of 56 million
- Monthly Transacting Users (MTUs) of 6.1 million
- Assets on Platform of $223 billion, representing 11.3% crypto asset market share, including $122 billion of Assets on Platform from Institutions
- Trading Volume of $335 billion
- Total Revenue of approximately $1.8 billion
- Net Income of approximately $730 million to $800 million
- Adjusted EBITDA of approximately $1.1 billion
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The Crypto exchange presently has about 56 million verified users as of Q1 2021, taking to account that Coinbase is not currently available to residents of Africa’s biggest crypto market (Nigeria).
Coinbase also operates a Crypto custody business for institutional investors and plans to make its direct listing debut at Nasdaq on April 14, the first of its kind for a major Crypto exchange.
The Crypto exchange was founded about a decade ago, allowing its clients to buy and sell Cryptos like Bitcoin, Ethereum and Polkadot. The Crypto exchange had earlier raised over $540 million in funding as a private company, its current market value stands at about $90 billion.
In a footnote, it explains “In May 2020, we became a remote-first company. Accordingly, we do not maintain a headquarters.”
As a risk factor, it cites: “The identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins.”
