The S1 listing of the largest US crypto currency exchange Coinbase, as filed with the US Securities and Exchange Commission, is now public. We can get very important data which is believed to give feedback to the rally in the crypto currency markets, according to this.
The company is expected to start trading with a market capitalisation of over $100 billion. Consultants in the offer have been undertaken by Goldman Sachs, Citigroup, JP Morgan and Allen & Co.
The exchange recorded net income of $1.1 billion in 2020, and $482.9 million in 2019. Respectively, expenses ranged to $868.5 million in 2020, from $579.5 million in the previous year. In 2020 it recorded profits of $322.3 million, while the fiscal year 2019 was loss-making by $30 million.
The company currently serves 43 million registered customers and 7,000 institutional investors from 100 countries. Respectively, the exchange has 2.8 million monthly active customers trading, almost three times more than 1 million last year.
The exchange is now a custodian for $90 billion worth of crypto currencies deposited by its customers and 96% of the company’s revenue comes from transactions. So even though we are going through the first months of 2021, the exchanges based on the data collected, are expected to make a record trading volume at $362 billion.
Exchange competitors have already pointed out that they have a larger number of active users such as FTX. The $100 billion capitalisation is estimated to spark a new rally for crypto currencies from crypto currency exchanges and Coinbase competitors.
Although these crypto currencies are not shares and have no rights to exchange earnings, they are expected to create new equilibrium points and be the driving force for the “continuation of the rally”.