The publication of Coinbase’s S-1 provides the first public view of its financial performance and how it intends to use the funds it raises. Coinbase made a $322 million profit last year.
Coinbase’s 2020 profit of $322 million compared to a loss of $30 million in 2019, and its 2020 revenue jumped 140% from the $533 million it earned in 2019.
The company stated: „We expect our operating expenses to increase significantly in the foreseeable future and may not be able to achieve profitability or achieve positive cash flow from operations consistently, which may cause our business, operating results, and financial condition to be adversely impacted.”
The jump is not surprising as Coinbase earns the better part of its revenue on trading commissions, and that interest in cryptocurrencies surged late last year as the price of Bitcoin rose from around $10,000 in September to over $30,000 by the end of the year. These days Bitcoin is trading around $50,000.
Brian Armstrong (Coinbase founder and CEO) in a letter to investors claimed: „Coinbase is a company with an ambitious vision: to create more economic freedom for every person and business. Everyone deserves access to financial services that can help empower them to create a better life for themselves and their family, but today we’re a long way from that vision.“
Coinbase has recently been valued at $100 billion. This is one of the most hotly anticipated public offerings of 2021.
Coinbase’s public listing will mark another major moment in crypto’s evolution.
Source: www.coindesk.com
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
