After reading the reports that Coinbase has released for the first quarter of 2021 or Q1 all I can say is wow. The numbers alone speak for themselves and with the numbers being released before the direct listing on the Nasdaq that is supposed to occur next week I expect to see Coinbase do extremely well. In recent history, IPO’s have tended to be for companies that were not profitable or were just barely profitable, and Coinbase bucks this trend.
The year-over-year estimates released showed a NINE FOLD INCREASE from $190.6 million to $1.8 BILLION. Absolutely stunning numbers that personally makes my jaw hit the floor. Coinbase had previously told investors that they were profitable last year and made tens of millions of dollars while they were investing in increased security for the platform. This quarter’s net income is expected to spike from $39.1 million to between $730 and $800 million this quarter.
These are not numbers that recent tech companies have offered. Many companies the last few months have been going public via SPAC to be able to lock in financing something that Coinbase is avoiding with the direct listing. If you did not know a direct listing allows current shareholders to be able to sell their shares from the first day of trading. In a traditional IPO, lockup periods exist that prevents the founders and early investors from cashing out.
While a ton of crypto users do not like Coinbase due to its fees and centralized structure it has served a really important purpose in getting crypto as big as it is in the United States. Coinbase has also helped facilitate some of the large corporate purchases that have been in the news recently. Now with them being trendsetters with the IPO institutional interest will continue to grow which will end up benefitting all of those involved.
Even the companies and investment firms that do not exactly like crypto right now are going to be interested in these numbers. These numbers are completely unheard of for a company that is new and technology-based but a fantastic thing. For the big financial firms though money talks at the end of the day. These firms we imagine as old-school have had to keep up with the times over the year and years that they have been around and it’s not like they are going to turn down a money maker just because they do not like the idea.
Like always do your own research! I am not a financial advisor just someone who follows the news and markets!