Coinbase has revealed its first-quarter performance. The US-based crypto exchange has surpassed analysts expectations as it revealed it has grown nine-fold. The surge is timely as the company is just days away from its Nasdaq IPO.
Coinbase has become an institutional powerhouse. After capturing retail investors early on, Coinbase quickly established itself as the go-to custodian for institutions. Although this was a slow start, in the last 2 years, it has really picked up with a number of companies adding Bitcoin to their balance sheets.
In that period, Coinbase has seen exponential growth. This led its CEO, Brian Armstrong, to decide to list on Nasdaq earlier in the year. This is now set for next week following regulatory approval. Ahead of this, the company has revealed its financial report of the just concluded first quarter of the year.
Spurred by Bitcoin doubling in that period, there has been increased institutional demand. The company has reported that net income has climbed to between $730 million and $800 million. In the same period last year, this stood at $32 million. Its revenue jumped to $1.8 billion an increase from $190.6 million recorded last year. It further confirmed that it now has 56 million verified users. The company however notes that these results are preliminary and unaudited hence subject to change.
These results will be a major boost ahead of its debut on the stock market. They are further an indication that the company is set for a better finish this year, surpassing last year. According to SEC filings, the company recorded a net profit of a little over $300 million. With the first-quarter results, it has earned half of this.
Coinbase IPO Solid As A Rock
The listing of Coinbase is set to be a first of its kind and other crypto exchanges are tipped to follow the same trend. It is expected that the firm will be valued between $50 billion and $100 billion. These latest financials not only see potential share buyers excited but also squash any rumours that the company is struggling. Just days ago, veteran trader Peter Brandt suggested that the exchange might be going under. This has been rightfully addressed now.
The listing is also poised to be big for Bitcoin. As Coinbase is exposed to traditional investors, Bitcoin will also be exposed to some of these investors. A pump is expected across the market once the firm is listed.