- Coinbase’s crypto trading volume grew by 276% in the first quarter of 2021.
- In Q1 2021, the number of monthly active users on Coinbase touched 6 million.
- Crypto assets on Coinbase saw a growth of 1200% year-on-year in Q1 2021.
Coinbase, the crypto behemoth, has posted $1.8 billion in revenue in Q1 2021, dwarfing its revenue of $190 million in Q1 2020. As per the announcement made by Coinbase, their trading volume is also up by 276%. The announcement comes just 10 days before Coinbase’s direct listing on Nasdaq.
Aided by the Bull Run
The massive revenue growth is partly because of the explosive growth in Bitcoin prices in this bull run, which has lured in new users to Coinbase’s fold. The current bull run also led to the explosive growth in Coinbase’s trading volume as it is up by 276%.
Coinbase’s monthly active users have more than quadrupled this bull run, rising from 1.3 million to 6 million in the first quarter. Crypto assets on Coinbase, on the other hand, saw a growth of 1200% year-on-year, rising to $223 billion from $17 billion.
The US-based crypto exchange disclosed that its EBITDA was approximately $1.1 billion, and the estimated net income was between $730 million and $800 million.
Alesia Haas, Coinbase’s chief financial officer, said:
“We have seen all-time high crypto prices drive elevated levels of user activity and trading volume on our platform.”
Monthly Active Users
Coinbase boasts 56 million verified users and is one of the largest crypto exchanges in the world. Haas, Coinbase’s CFO, suggested that the current bull run is likely to increase their monthly active users by 1 million, helping Coinbase touch a figure of 7 million monthly active users.
She also warned that a bear market could spoil the party and will lead to a drop in the number of active monthly users. The fall could be drastic as the numbers will dwindle to 4 million monthly active users if a bear market begins.
Coinbase will increase its spending on sales and marketing to boost the monthly active users on the platform. Once the listing is done, the giant US-based cryptocurrency exchange will spend between 12% and 15% of its net revenue in 2021 on the company’s meaningful growth.
“Looking to the full year 2021, in order to scale our operations and to continue to drive product innovation, we expect our technology and development expenses and our general and administrative expenses to be between $1.3 billion to $1.6 billion, excluding stock-based compensation, in 2021.”
The Nasdaq Listing
The revenue report released by Coinbase is not audited but Coinbase wanted to release a detailed report before April 14, the date of Coinbase’s Nasdaq listing. Under the ticker symbol of COIN, the crypto exchange will register a total of 115 million shares of Class A common stock.
Coinbase won’t be selling any new stocks as they have opted for a direct listing, which means there won’t be any new stock from Coinbase for sale. The only shares that will be available on the day of IPO listing will be the ones that the existing shareholders of Coinbase would sell to new investors.
The valuation of Coinbase has ranged between $68 billion to $120 billion as per multiple valuations based on the private market. Thus, Coinbase’s IPO will prove to be the biggest so far in the history of the crypto industry.
Lauding Coinbase’s impressive figures in the first quarter, Sam Bankman-Fried, FTX founder, congratulated Coinbase on Twitter. He also extended his congratulations to Coinbase for its upcoming IPO listing.