Coinbase announces monster Q1 results ahead of April 14 direct listing

[Shawn Knight]

The big picture: American cryptocurrency exchange Coinbase has announced estimated earnings results for the first quarter ahead of its planned listing on the Nasdaq stock exchange later this month. Should the momentum around crypto hold up, the company could have a big debut.

In the three-month period ending March 31, 2021, Coinbase said it generated estimated revenue of $1.8 billion with a net income of approximately $730 million to $800 million.

Other metrics of interest include Coinbase’s 56 million verified users and 6.1 million monthly transacting users (MTUs). Platform assets reached $223 billion, up from $90.3 billion at the end of 2020, and representing 11.3 percent of the total market value of all cryptocurrencies.

Coinbase said trading volume reached $335 billion, compared to $193.1 billion at the end of the previous quarter, per its S-1 filing with the SEC.

The crypto industry has been riding a monster wave since the end of 2020, and that’s certainly reflected in Coinbase’s impressive Q1 estimates. Still, the exchange is cognizant of industry volatility and says they “intend to prioritize investment, including in periods where we may see a decrease in Bitcoin price.”

Looking ahead to the full year, Coinbase laid out three possible scenarios that annual average MTUs could take:

• High: Average 2021 MTUs of 7.0 million. This scenario assumes an increase in crypto market capitalization and moderate-to-high crypto asset price volatility. In this scenario, we expect that MTUs continue to grow for the remainder of 2021.

• Mid: Average 2021 MTUs of 5.5 million. This scenario assumes flat crypto market capitalization and low-to-moderate crypto asset price volatility. This scenario assumes a modest decline in MTUs from Q1 2021.

• Low: Average 2021 MTUs of 4.0 million. This scenario assumes a significant decrease in crypto market capitalization, similar to the decrease observed in 2018, and low levels of crypto asset price volatility thereafter. In this scenario, we assume MTUs will decrease in a corresponding manner and end 2021 at similar levels to Q4 2020.

Coinbase plans to forego a traditional IPO and list its shares directly on the Nasdaq under the ticker symbol COIN on April 14.

Images courtesy Useacoin, Wit Olszewski

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[QuantumPhysics]

I will definitely put $3000 into the coinbase stock simply so I can profit off of those buying/selling crypto (whether I believe in it or not).

Investing in the businesses in/around crypto - especially Nvidia is a great way to win, regardless the crypto buyers win or lose every single dime.

 

[VaRmeNsI]

I will definitely put $3000 into the coinbase stock simply so I can profit off of those buying/selling crypto (whether I believe in it or not).

Investing in the businesses in/around crypto - especially Nvidia is a great way to win, regardless the crypto buyers win or lose every single dime.

Why not just buy crypto instead?

 

[Lounds]

... Pop.

 

[QuantumPhysics]

Why not just buy crypto instead?

Because it's a ponzi scheme.

I'd rather capitalize on all the losers and the winners simultaneously.

 

[Ryan Barrett]

Because it's a ponzi scheme.

I'd rather capitalize on all the losers and the winners simultaneously.

Thinking like this is why the U.S. is falling behind China. Get with the times bro. Bitcoin may not be what ends up being the dominant crypto forever, but crypto is the way of the furture. You can protest now or celebrate later. Your choice. Just do your research.

 

[VaRmeNsI]

Because it's a ponzi scheme.

I'd rather capitalize on all the losers and the winners simultaneously.

Coinbases value is mostly derived from crypto going up in value, crypto is also a 24/7 market when the ponzi does collapse, it may be out of stock trading hours, that's why I prefer trading it directly, you can also buy Bitcoin futures with stablecoins if you prefer.