SimpleFX lets you participate in the most expected direct public listing of the year. If you own or trade cryptocurrencies you probably know Coinbase, one of the largest crypto exchanges in the world. The US-based company is going public on April 14. You simply can’t miss this event. It should affect bitcoin and altcoin prices as well. If successful, the operation should boost confidence in cryptocurrencies worldwide.
You can trade Coinbase with SimpleFX with up to 50x leverage from the get-go. Ten traders who make the biggest trading volume on Wednesday will win prizes. We are going to give away $1,000, and the winner gets $300 paid in bitcoin. T&C apply.
Coinbase is not doing a traditional IPO. It’s going public through a direct listing instead (DPO).
The current owners of Coinbase stock will convert their shares to make them available for trading. Unlike in an IPO, a company choosing for a DPO does not aim at funding its ongoing operations the money raised. It usually, doesn’t issue new shares.
Coinbase is going public through a direct listing, which means the owners are going to convert their shares in the company to publicly traded stocks. The company listed 114,850,769 shares, however not all of them are going to be publicly available. We don’t know the suggested stock price yet. All this makes the Wednesday DPO even, but we don’t yet know exactly how many will be available for sale, and the company has yet to reveal a proposed stock price. So far the Coinbase sales on the Nasdaq Private Market went as high as $375 per share.
At the moment the private equity markets estimate that Coinbase is worth somewhere between $68 and $100 billion, which is impressive. But it’s no surprise if you take into account the surge in price and adoption of crypto around the world. Cryptocurrency exchanges are the companies that profit the most from the ever-popular ownership of digital money.
Unless a government bans cryptocurrencies or exchanges on their territory, this is probably going to be a winner-takes-all market, just like in many other tech markets. At the moment Coinbase is competing with Binance for future domination.
According to Coinbase data, the platform has already over 56 million users in more than 100 countries. The exchange is used by more than 7,000 institutional clients and is partnered with 115,000 entities.
Of course, last year’s crypto bull market was a boost to Coinbase results. They ended 2020 with reported revenue of $1.14 billion, which meant a year-to-year increase of 139%. However, the true breakthrough was the company turning profitable from a $30 loss in 2019 to $322 profit in 2020. The adjusted EBITDA went through the roof, soaring by over 2000%, and reaching $527 million.
All numbers are on the rise. The number of monthly transacting users increased by 180% to 2.8 million. The users keep over $90 billion in assets in 2020 (a 432% increase year to year). What’s maybe more important for the company the trading volume increased from $80 billion in 2019 to $193 billion in 2020.
It’s enough to take a look at the cryptocurrency prices and news mentions to imagine that Coinbase in 2021 may have accelerated. In the first three months of 2021, the number of verified users went up by over 30%. The first-quarter revenue increased tenfold to $1.8 billion, in comparison to $190.6 in Q1 2020. The net income is reportedly up 2,300% year to year in the first part of 2021.
These are amazing numbers, but as you can see the company is already extremely hyped. Get ready for a rollercoaster trading day. You should be able to make money on both long and short orders. Use the leverage wisely, and collect $300 on top of all your profits. Good luck!