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Coinbase Q1 2021 records $1.8 billion in revenue ahead of Nasdaq listing

  • Coinbase publishes Q1 2021 financial as it prepares for its public trading debut.
  • The exchange generated $1.8 billion in revenue and a net income ranging from $730 million to $800 million in the previous quarter.
  • The company has benefited from the soaring prices of cryptoassets.

San-Francisco-based cryptocurrency exchange Coinbase updated investors on its financials for the first quarter of 2021 as it winds the clock for its trading debut on the Nasdaq stock exchange.

Coinbase reported on Tuesday that it generated an estimated $1.8 billion in revenue for the three months ending March 31, 2021.

Notable growth

According to a press statement published on April 6, Coinbase collected approximately $1.8 billion in revenue in the first quarter of 2021, compared to the $196 million it generated in the same period last year.

Within one year, the exchange has grown its income nearly nine-fold, and this is partly due to bitcoin’s wild run that has seen the digital asset set multiple historic highs.

The exchange further said that the figures are preliminary and unaudited.

Coinbase pocketed a net income that ranges from $730 million to $800 million, up from $31.9 million a year ago.

The exchange, which is arguably the best in the U.S., said that it has 56 million verified users.

A massive valuation

The exchange is currently one of the hottest tickets in the crypto market as it prepares for the much-anticipated public listing.

Coinbase’s private shares that traded on the secondary market gave the company a valuation between $66 billion and $100 billion. 

The exchange recently announced that its registration statement was approved by the U.S. Securities and Exchange Commission (SEC), paving the way for its listing on the Nasdaq stock exchange on April 14.

Coinbase makes most of its money from attracting and retaining users who trade the two leading digital assets. And it is now plotting to diversify its income streams.

“We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class,” the exchange said in the press statement.

Future outlook

The exchange benefited from the bull run that has seen the sector’s market cap surpass $2 trillion.

Coinbase registered a trading volume of $335 billion, and the digital assets on the exchange are worth $223 billion, representing just over 11% of the total market share.

Nearly half of the assets on the platform ($122 billion) are from institutions. 

The exchange claims to have 6.1 million monthly transacting users (MTU) on its platform. Coinbase outlined three possible MTU scenarios that could play out as the year progresses.

If the year turns out to be favorable, Coinbase will have an average 2021 MTU of 7 million and in a bearish environment, this number could drop to 4 million.

In the middle range, the average 2021 MTU will stand at 5.5 million.

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