Coinbase is likely to make the biggest IPO of the year. The Bitcoin and Cryptomoney broker is set to conquer the New York Stock Exchange, since it has officially applied for a listing on the Nasdaq. On Thursday, February 25, 2021, the company filed its Form S-1, the first official document required to list on a U.S. stock exchange in direct listing. The direct competitor of the brokers Bitpanda, Coinhouse and the French company StackinSat, is the first cryptocurrency exchange site to conquer the stock market. For the community of cryptos enthusiasts, this Nasdaq listing is a major event that reinforces the credibility of the world of cryptos, often considered obscure by the general public – or at least until the recent explosion in the price of Bitcoin, which exceeded 40,000 euros.
Coinbase: the second largest crypto broker
By filing its official documents, several pieces of information about the broker’s financial health were revealed to the public. Created in California by Brian Armstrong and Fred Ehrsam in 2012, Coinbase now has 43 million users (end 2020 figures), including 2.8 million who carry out transactions at least every month. It is thus the second largest cryptomoney platform, after the Chinese Binance. This has enabled it to double its turnover in 2020 to $1.2 billion. As for the company’s net profit, it climbs to $322 million, compared to a loss of $30 million in 2019.
The company’s liquidity is also impressive: Coinbase has $1.1 billion in cash and cash equivalents (still end 2020 figures), and holds $130.1 million in Bitcoin, $23.8 million in Ethereum and $34 million in other cryptomoney. In the end, Coinbase customers managed a total of $90.3 billion via the platform, which represents +430% over one year.
A valuation estimated at $100 billion
Coinbase could make one of the largest IPOs in recent years. In the last round of trading on February 19, 127,000 shares were sold at $373 each, valuing Coinbase at $100.3 billion. One could thus compare the IPO of the cryptos exchange platform with that of Facebook. It should also be noted that on the NASDAQ, few large companies have started their listing at such levels.
Bitcoin surges 500% in one year
If Coinbase has made so much profit recently, it is also because it has benefited from the soaring price of Bitcoin, which has greatly increased the number of virtual currency exchanges. Indeed, the world’s leading cryptomoney has benefited from an increase of almost 500% over a year, and almost 200% over the last three months. Several symbolic thresholds have been crossed, such as the 20,000 dollar threshold on 14 December 2020, the 50,000 dollar threshold on 16 February 2021, before almost crossing the 60,000 dollar mark last Sunday. That’s when its market capitalization crossed the $1 trillion mark. Coinbase’s IPO comes at the right time, as Bitcoin has been enjoying a very good exposure over the last few days.