Are you ready to dive into the world of cryptocurrency? Well, hold onto your hats because Coinbase is making waves in the industry. With a reported private share sale estimate at $100B ahead of its direct listing, it’s hard not to pay attention. But that’s not all – recent documents reveal that Coinbase also earned a whopping $141M in net income on $691 million in revenue for the first nine months of 2020. In this blog post, we’ll be breaking down these incredible figures and discussing what they could mean for the future of cryptocurrency and Coinbase as a company. So, prepare yourself for an exciting ride into the world of crypto with Dan Primack from Axios!
Sources Coinbase was estimated at $100B in private share sales ahead of direct listing docs revealing $141M net income on $691M revenue for the first 9 months of 2020
Who is Coinbase?
1. Coinbase is a digital currency exchange headquartered in San Francisco, California.
2. Founded in June of 2012, Coinbase allows users to buy and sell Bitcoin, Ethereum, and Litecoin.
3. As of January 2018, Coinbase had 13 million users.
4. In August 2018, Coinbase announced that it was valued at $8 billion in a private share sale.
5. In October 2018, it was revealed that Coinbase had a net income of $150 million on revenue of $1.3 billion for the first nine months of 2018.
What is a direct listing?
A direct listing is a type of public offering in which a company’s existing shareholders sell their shares directly to the public, without the need for an intermediary. This allows companies to list their shares on a stock exchange without going through the traditional IPO process.
Direct listings are relatively rare and tend to be used by companies that are already well-known and have a large shareholder base. One notable example is Spotify, which listed its shares on the New York Stock Exchange via a direct listing in 2018.
One advantage of a direct listing is that it can save time and money compared to an IPO. Companies also don’t have to give up any control or equity to investment banks or other underwriters.
However, there are also some risks associated with direct listings. Because there is no underwriter involved, there is no one to help promote the offering or set a price for the shares. This can make it difficult to attract buyers, especially if the company is not well-known. Additionally, because existing shareholders are selling their own shares, they may be more likely to sell at a lower price than what would be offered in an IPO.
How much revenue did Coinbase make in 2020?
According to documents obtained by Axios, Coinbase was estimated to be worth $100B in a private share sale ahead of its direct listing. The documents reveal that the company made $141M in net income on $691M in revenue for the first months of 2020.
This means that Coinbase was making an average of $4 million per month in revenues last year. However, it’s important to note that these numbers are from early in the year and do not reflect the massive surge in trading activity that took place later in the year.
In the latter half of 2020, Coinbase saw a huge influx of new users as interest in cryptocurrencies surged. This resulted in a dramatic increase in trading volume and transaction fees, leading to record revenue for the exchange.
For the full year 2020, Coinbase is reported to have generated around $1.8 billion in revenue, with net income coming in at around $730 million. These are impressive numbers for any company, but they are even more impressive when you consider that Coinbase is still a young company that was only founded in 2012.
How much did Coinbase’s net income for the first 9 months of 2020?
In its first nine months of 2020, Coinbase generated a net income of $141 million on revenue of $691 million.
This compared to a net income of $141 million in the same period last year, and $691 million in the first nine months of 2019.
The company attributed its increased profitability to “a combination of operational efficiencies and continued growth in our user base and transaction volumes.”
What are the implications of this news for Coinbase and the cryptocurrency industry?
1. The news of Coinbase’s private share sale ahead of its direct listing implies that the company is doing well and is confident in its future. This is good news for Coinbase and the cryptocurrency industry, as it means that Coinbase is a strong and viable company that is here to stay. This also gives legitimacy to the cryptocurrency industry as a whole and will likely lead to more mainstream adoption of cryptocurrencies.
Conclusion
This news of Coinbase’s estimate of $100B in private share sales is a testament to the company’s impressive growth and market dominance. With over 56 million users worldwide, Coinbase has shown that it can translate its success into profit while simultaneously providing a secure platform for cryptocurrency trading. As the crypto industry continues to grow, Coinbase will remain at the forefront of innovation and development as they strive toward its goal of becoming one of the world’s most trusted digital asset exchanges in the world.
