Ahead of its Nasdaq debut next week, cryptocurrency exchange Coinbase revealed its revenue for the first quarter jumped by nearly nine-fold compared to year-ago levels, largely due to the ongoing record rally in major cryptocurrencies such as bitcoin.
In a press release published on Tuesday, Coinbase announced that its revenue soared to $1.8 billion in the first quarter of 2021, marking a significant increase from the $190.6 million recorded a year ago. Net income for the cryptocurrency exchange rose to anywhere between $730 million and $800 million, compared to $31.9 million in the first quarter of 2020. Coinbase did note, however, that the figures are only preliminary and unaudited.
Last week, Coinbase announced that its direct listing has been approved by the SEC, and is set to begin trading on the Nasdaq come April 14. The company revealed it will trade under the ticker symbol COIN, and that it plans to register almost 115 million shares of Class A common stock. Although Coinbase’s success is heavily reliant on the trajectory of major cryptocurrencies and the users that store and trade them, the digital coin exchange is also speculating on the advancement of a much bigger ecosystem of crypto assets in the near future.
Coinbase is the newest tech company to make a public debut with an enormous valuation, as it capitalizes on progressive growth in the crypto sector, despite the broader economic fallout stemming from the Covid-19 crisis.
Information for this briefing was found via Coinbase. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.