Analysts estimate the value of cryptocurrency trading platform Coinbase – the largest in the US – at $70 billion to $90 billion ahead of its first public offering (IPO) next Friday, after the bitcoin price soared.
Coinbase is the first bitcoin trading company to be listed on the stock market, specifically on the Nasdaq, while 50 cryptocurrencies are traded on its platform. According to Investor’s Business Daily, the company will announce the reference price for the 114.9 million shares it intends to sell directly to the investing public one day before the start of trading.
In its preliminary announcement of first-quarter results on Tuesday, Coinbase said it had 56 million customers with accounts for it, up from 43 million at the end of December.
Analysts expect Coinbase IPO to increase the prestige of the cryptocurrency market. Coinbase’s earnings for the first quarter exceeded the total profits of 2020, with the company recording revenues of $1.8 billion in the quarter and net profits of about 730 million euros, while in 2020 it had revenues of 1.3 billion dollars and profits of 322 million euros. About 96% of Coinbase revenue comes from transaction fees.