Coinbase IPO: 7 Key Takeaways Investors Should Know

Coinbase IPO: 7 Key Takeaways Investors Should Know

Cryptocurrency exchange Coinbase has filed for a direct listing to bring shares to the public market.

The company’s direct listing could value the company at $100 billion, according to Axios. Coinbase last raised funds in 2018 at an $8 billion valuation. In 2017, Coinbase was valued at $1.6 billion.

Shares of Coinbase will trade as ticker COIN on the Nasdaq.

The company aims to bring cryptocurrency-based financial services to anyone with a smartphone, representing a market size of 3.5 billion people.

Impressive User Base: Coinbase’s filing revealed how many users the company has: 43 million verified users. As of December 31, Coinbase had 2.8 million monthly transaction users.In 2012, Coinbase had 13,000 users. The company has seen its user count grow over the years as cryptocurrency has gained interest from retail traders and institutions. The surge in Bitcoin's (CRYPTO: BTC) price over the last year has led to strong interest in multiple cryptocurrencies. 

Key Player in Crypto Investing and Storage: Coinbase has a lifetime trading volume of $456 million. The company has over $90 billion in assets on the platform.

Coinbase supports 90 cryptocurrency assets for trading or custody ownership. Customers can invest in more than 45 cryptocurrency assets.

Trading volume on the Coinbase platform was $17 billion, $21 billion and $38 billion for fiscal 2018, fiscal 2019 and fiscal 2020 respectively.

Strong Growth Of Institutional Customers: While Coinbase may be seen as more of a play on the retail traders wanting to invest in cryptocurrency, Coinbase has seen strong growth of institutional customers as well.

The company ended 2020 with over 7,000 institutional customers. In 2017, Coinbase had 1,000 institutional customers.

“We provide hedge funds, money managers and corporations a one-stop shop for accessing crypto markets through advanced trading and custody technology,” the company said in the filing.

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