As some of you may know, I buy crypto on Coinbase (at least some of it.) In case you have not noticed, Coinbase had its initial public offering about two weeks ago. So instead of investing directly into crypto, you can now invest in a company that has most of its assets in crypto. Let’s see what happened since the IPO.
Coinbase owns about 11.3% of the crypto assets market shares which at the moment equals to about US$ 223 billion. The recent climbs of Bitcon, Ethereum and others resulted in more users trading which again resulted in a trading volume of an amazing $335 billion in the first quarter of 2021. Currently, the platform has around 56 million users in more than 100 countries. They employ around 1700+ people.
The revenue increased from just under US$ 534 million in 2019 to over US$ 1.277 billion in 2020. If that sounds amazing to you then wait a minute. In Q1 of 2021 – that’ the first three months of 2021!, Coinbase had a revenue that was 43% higher than the revenue of the whole year 2020…in only three months! That amounts to US$ 1.8 billion. Growth is definitely no stranger to Coinbase.
The net income for Q1 is estimated at US$ 730 to 800 million. If this would not grow for the remainder of the year we would end up with a net income of around $3 billion for 2021. But the company is growing like crazy, though it is subject to fluctuations on the crypto market. Note that Coinbase is currently worth $60 billion.
Projecting the Q1 earnings forward for the whole year the price-earnings-ratio would amount to less than 20. Definitely sounds like a good deal.
Some More Info
There are two classes of shares, namely A and B, ss it is often the case with US stocks. The class A shareholders have a single vote per share, while the holders of class B have 20 per share. However, only institutional investors and company insiders have access to those shares. The CEO sold stocks worth $292 million on the first trading day.
Finally, let’s have a look how the first trading days went.