Coinbase, preparing to go public next week on Nasdaq, posted first-quarter 2021 estimated net income of $730 million to $800 million on revenue of $1.8 billion, up from $322 million on revenue of $1.3 billion in 2020, The Wall Street Journal reported on Wednesday (April 7).
The Silicon Valley cryptocurrency platform founded in 2012 enables investors to buy and sell bitcoin and about 50 cryptocurrencies. The startup’s revenue surge benefited from a bitcoin rally earlier this year that topped 2020’s buy and sell frenzy.
Bitcoin topped $61,000, a record high that also helped boost the prices of other crypto and non-fungible tokens (NFTs). Trading volume on Coinbase hit $335 billion and its user base grew to 56 million verified users.
The startup’s planned Nasdaq debut on April 14 will be the first time in history that a major cryptocurrency platform is going public.
The company, whose revenues are tied to a volatile market with price cycles that run two to four years, anticipates a second-quarter expense of $35 million because of the direct listing. It anticipates that its expenses will total $1.3 billion to $1.6 billion in 2021, per the WSJ.
Coinbase had a valuation of roughly $90 billion in its last week of trading on the Nasdaq’s private market. The company filed with the Security and Exchange Commission (SEC) on April 1.
Coinbase first announced in January that it was planning a direct listing. The company also introduced a new visa debit card called the Coinbase Card in October 2020.
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