As the major cryptocurrency exchange Coinbase prepares to publicly trade on the Nasdaq, it announced its estimated results and outlook for the first quarter for all of 2021.
Net income for the quarter is estimated at $ 730 million to $ 800 million, with total revenue of around $ 1.8 billion – up from around $ 190.6 million in the first quarter of 2020 per CNBC. Verified user numbers for the quarter are estimated at 56 million (up from 43 million at the end of 2020), with 6.1 million counting as monthly transactional users (MTUs). The trading volume in the first quarter is estimated at $ 335 billion.
Looking at performance for the full year 2021, Coinbase predicted that depending on the growth or decline in market capitalization for cryptocurrencies, there could be an annual average of up to 7 million MTUs or just 4 million MTUs. It was also noted that growing institutional interest in cryptocurrencies could affect growth over the course of the year.
“We expect significant growth in 2021 driven by transaction and custody revenues as institutional interest in the crypto asset class has increased,” the announcement said. “However, our institutional revenues are inherently unpredictable.”
Many are watching Coinbase closely as it nears its direct listing, which is slated for April 14th. As one of the oldest and most popular Bitcoin investment portals in the world, its success is reflected in the first quarter of the year, and as it approaches that historic price, BTC’s success.