Coinbase Cryptocurrency Exchange’s Revenue Increases 9-Folds during Q1 2020 to Q1 2021
Leading cryptocurrency exchange Coinbase has said that the company’s revenue has increased 9-folds from First Quarter, 2020 to First Quarter, 2021. In comparison to US$190.6 million revenue in Q1 2020, Coinbase’s revenue has increased to US$1.8 billion in Q1 2021.
Reports say that during this time, the number of verified users of the crypto exchange has increased by 56 million. The net income of Coinbase has increased from US$31.9 million to around US$730–800 million during the same period. In a statement, the company also said that these published results are preliminary and unverified, indicating that the revenue figure may increase after the final calculation.
These revelations come at a time when Coinbase’s IPO is all set to hit the market next week. The company had said last week that the U.S. Securities and Exchange Commission (US SEC) has approved the direct listing and the IPO is slated to hit the market on April 14, 2021. In its plans, Coinbase has said that around 115 million Class A common shares are planned to be registered and its symbol for trading will be COIN.
Coinbase has also said:
“We expect significant growth in 2021, driven by transaction and custody revenues, given the increased interest of institutions in the crypto asset class.”
The company has revealed in its first-quarter report that there are around 6.1 million verified users in its exchange who completed at least one transaction per month (MTU). The company stressed the fact that a large part of their business comes from these kinds of transactions.
Coinbase has also said that if the current bullish trend persists then the MTU will reach 7 million. The company also believes that the MTU will hover around 5.5 million if stabilization of cryptocurrencies takes place. Even if the price falls, the MTU will be US$4 million.
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