Coinbase - the second largest cryptocurrency exchange after Binance - has recorded record profits in the past period, while it plans to list its shares for first trading on the Nasdaq exchange next week. , At an average price of $ 350 per share, and plans to offer its shares on Wall Street, thanks to investor support.
In a report published by the French newspaper Les Echos, the writer Nassim Ait Qasimi said that the Coinbase platform revealed a profit margin of approximately 25%, and achieved revenues of $ 1.8 billion in the first three months of 2021.
The company's quarterly profit is about $ 800 million, and it has acquired 13 million new customers in 3 months, which is equivalent to all of Robinhood's clients.
The number of Coinbase users reached 56 million people, 10% of them (6.1 million users) complete transactions on a monthly basis, and this number is expected to rise to 7 million this year.
A remarkable rise
Compared to the last quarter of 2020, the company's revenues have doubled 3 times, and its profits have increased 4 times, and this rapid rise is in line with the rise in cryptocurrency prices.
The Coinbase platform has an 11.3% share of the global cryptocurrency market, and the company wants to continue investing and diversifying its business in this sector. It has already completed a number of acquisitions and is looking for more, even in light of the unpromising expectations in the past period.
In 2020, Coinbase revealed a profit of $ 322 million, after recording a loss of $ 30 million the previous year.
In January and February of last year, the monthly transaction volume of the platform reached 120 billion dollars.
In general, the volume of transactions increases when the prices of cryptocurrencies rise, which attract new investors and speculators, and the activity decreases when prices fall, according to the writer.
The number of users of the "Coinbase" platform reached 56 million people (Getty Images)
The platform benefited from the records recorded in the cryptocurrency market, and the timing is ideal for Coinbase, which is preparing for the initial public offering of its shares on April 14th on the Nasdaq exchange, which includes about 20 platforms specialized in the field of cryptocurrencies.
In February, the average share price of "Coinbase" was estimated at about $ 300, and the share's trading price was $ 343.58 in private transactions between January and March 15, giving the company an average valuation of $ 68 billion. Its valuation is $ 100 billion, according to the latest data.
108 cryptocurrencies on the platform
Brian Armstrong is one of the co-founders of the company, and previously worked as an Airbnb programmer.
When the platform was launched in 2012, it was being promoted as "the easiest way to start trading Bitcoin," and the number of its users at that time was around 13,000 people.
Armstrong said that after 10 years, "we can be more than just a platform to buy and sell Bitcoin. We will support all legitimate cryptocurrencies in the market."
In the first quarter of this year, Coinbase expanded its offerings by about 18 new cryptocurrencies, bringing the number of tradable currencies to 108. Smaller cryptocurrencies performed better than Bitcoin in the first quarter of this year.
And unlike online brokers such as the Robin Hood app, Coinbase gets most of its profits from higher transaction fees compared to its competitors.
Users complain about frequent technical crashes and some other problems they face when using the platform.
Professional users enjoy preferential services on the platform, as they pay commissions ranging from 0.04 to 0.5% depending on the volume of trades.
In recent years, Coinbase has attracted many institutions (more than 7,000) to its list of clients, and they currently own assets in the platform worth $ 122 billion.