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Key highlights:
- In Q1, Coinbase generated $1.8 billion in total revenue and brought in profits between $730 million and $800 million
- The company had 6.1 million monthly active users in the quarter
- Coinbase is expected to go public on April 14
Coinbase publishes estimated Q1 2021 results
U.S.-based cryptocurrency exchange Coinbase, which is expected to go public through a direct listing on NASDAQ on April 14, has published its estimated results for Q1 2021.
The first three months of 2021 were overwhelmingly positive for the cryptocurrency market, and this predictably translated to a strong performance for Coinbase. In the period, Coinbase generated $1.8 billion in total revenue, which translated to profits of between $730 million and $800 million. Coinbase generated more total revenue in Q1 2021 than it did in the entirety of 2020, where it brought in $1.27 billion.
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Coinbase handled a whopping $335 billion in trading volume in Q1 2021 compared to $89 billion in the quarter before. Compared to Q4 2020, the amount of monthly transacting users on Coinbase more than doubled in Q1 2020 – the company had 6.1 million such users compared to 2.8 million in the previous quarter.
The company also had $223 billion worth of ssets on its platform, which accounts for more than 10% of the total cryptocurrency market cap. According to Coinbase, around $122 billion of those crypto assets belong to institutions.
The company emphasized that its performance can be expected to fluctuate depending on the price of Bitcoin and the volatility of the cryptocurrency market. Coinbase also said that it plans to prioritize investing to scale its business:
"MTUs, Trading Volume, and therefore transaction revenue currently fluctuate, potentially materially, with Bitcoin price and crypto asset volatility. This revenue unpredictability, in turn, impacts our profitability on a quarter-to-quarter basis. In terms of expenses, we intend to prioritize investment, including in periods where we may see a decrease in Bitcoin price. This is because we believe that scale is central to achieving our mission and it is still early in the development of this industry."
Traders on the FTX cryptocurrency exchange are currently estimating that Coinbase’s market capitalization will be around $120 billion after the company’s first day of public trading.