Matt Weller, CFA, CMT
April 7, 2021 4:01 PM

For those who haven’t followed closely, one of the biggest IPOs in years is slated for next week

In the United States, Coinbase is synonymous with cryptocurrency trading, and with major cryptoassets such as Bitcoin and Ethereum near their all-time highs after massive spikes so far in 2021, there is no has never had a better time for the company to go public (or in its case, offer shares in a direct listing under the symbol COIN)

In anticipation of this momentous occasion, Coinbase released its estimated first quarter financial results yesterday, and the numbers were staggering:

The company has also announced plans to spend billions of dollars on scaling and marketing in 2021 to maintain aggressive growth with such impressive financial numbers, exponential growth and a seemingly insatiable demand for investors for IPOs (see Snowflake, DoorDash, Airbnb, and Roblox, among others), it’s no surprise that Coinbase’s fully diluted IPO valuation is expected to start at over B $ 100!

Going forward, the most immediate risk to the company’s shares will be the still volatile price of Bitcoin and Ethereum In yesterday’s filing, Coinbase noted that “MTUs, trading volume and therefore transaction income are currently fluctuating, potentially significantly, with the price of Bitcoin and the volatility of crypto assets. This revenue unpredictability, in turn, impacts our profitability quarter over quarter. cycles can be very volatile and therefore [Coinbase] measures [s] [its] performance over price cycles instead of quarterly results. equity investors to gain exposure to the current bull market in crypto-assets, for better or for worse

The other major narrative to follow with Coinbase in the coming months will be Institutional Adoption As noted by management, “significant growth in 2021 driven by transaction and custody revenues given the increased interest from institutions in the crypto asset class’ is expected IF (and this is a large FI) large institutions continue to accumulate cryptoassets over the next few quarters, Coinbase is expected to be a major beneficiary

Either way, Coinbase’s IPO next week will be a key measure of investor appetite for cryptoassets and IPOs in general – stay tuned. Listen to our site and social media channels for full event coverage!

StoneX Financial Ltd (as the “City Index”) is a provider of fulfillment services only.This material, whether or not it states opinions, is for general informational purposes only and does not take take into account your personal situation or your goals This material has been prepared using the thoughts and opinions of the author and these are subject to change.However, City Index does not plan to provide further updates of any material once published and it is not in the obligation to keep this material up to date This material is short-term in nature and may relate only to facts and circumstances existing at a specific time or day Nothing in this material is (or should be considered) financial, investment, legal advice. , fiscal or other and you should not trust it

No opinion given in this document constitutes a recommendation by City Index or the author that a particular investment, security, transaction or investment strategy is suitable for a specific person. The material has not been prepared in accordance with legal requirements to promote the independence of investment research Although City Index is not specifically precluded from processing before providing such material, City Index does not seek to take advantage of the material before its broadcast This material is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

CFDs are complex instruments and come with a high risk of losing money quickly due to leverage 73% of retail investor accounts lose money when trading CFDs with this provider You have to ask yourself if you understand how CFDs work and if you can afford to take the high risk of losing your money

We use cookies, and by continuing to use this site or by clicking “Accept” you agree to their use Full details are in our cookies policy

Coinbase IPO

Global News – United States – Coinbase IPO: What Can We Learn From The First Quarter Earnings Report Ahead Of The IPO stock Exchange?