The central theses
- Coinbase today sent its first quarter earnings call with CFO Alesia Haas and CEO Brian Armstrong.
- Executives revealed Coinbase’s expected future growth, as well as plans for new features and supported assets.
- However, executives spent almost no time discussing Coinbase’s initial public offering, which will take place next week.
Share this article
Coinbase released its first quarter earnings call today, revealing its expectations for financial growth and plans for future products.
Usage statistics are strong
“2021 has got off to a good start,” said Coinbase CFO Alesia Haas during the call. “We saw that high crypto prices led to increased user activity and increased trading volume on our platform.”
Haas drew attention to Coinbase’s user base, finding that the company had 56 million verified users and 6.1 million monthly transactional users (MTUs) in the first quarter of 2021.
She also outlined Coinbase’s financial stats for the first quarter. The company had a trading volume of $ 335 billion. The platform had assets valued at $ 223 billion, which is 11.3% of the crypto market cap. The company had total revenues of $ 1.8 billion, net income of $ 740 million to $ 800 million, and earnings before interest and taxes of $ 1.1 billion (EBITDA).
Haas then presented a series of forecasts for the future growth of Coinbase. Depending on the volatility of the market, Haas expects an average of 4 to 7 million transactions per month in 2021. You can find detailed information in the Coinbase press release.
New functions ahead
During the call, Coinbase CEO Brian Armstrong shared details of the company’s business plans. He says Coinbase sees its audience as “anyone with a smartphone” and compared the current state of the cryptocurrency industry to the start of e-commerce in the late 1990s.
“We believe that crypto will be a significant part of economic activity over the next decade as innovations continue to rapidly transform and grow the crypto economy,” said Armstrong.
Armstrong also discussed Coinbase’s product roadmap. Although Coinbase originally provided investment services, Armstrong plans to expand its offering by supporting more assets and providing access to third-party services like DeFi.
He also drew attention to Coinbase’s recent acquisition of Bison Trials, which will help the company serve institutional investors. This allows the company to offer blockchain as a service to institutional users, similar to the services currently offered by AWS.
No comments on the IPO
While many investors are waiting for details on Coinbase’s IPO, the call didn’t spend much time on the topic.
Haas stated that Coinbase had decided to release extensive details in light of the company’s upcoming IPO, noting that future reports may not be as thorough. In the meantime, Armstrong made a brief closing statement on the IPO: “We’re excited to begin the journey as a public company,” he noted at the end of the appeal.
Coinbase’s IPO will take place on Wednesday, April 14, 2021.
Disclaimer: At the time of writing, this author held less than $ 75 in Bitcoin, Ethereum, and Altcoins.
Coinbase’s $ 30 billion initial public offering is led by Goldman Sachs
New details on Coinbase’s IPO have been reported by third party and insider sources. Goldman Sachs Likely To Lead The IPO Goldman Sachs Could Lead Coinbase’s Upcoming IPO, According To …
Coinbase is preparing to go public
Coinbase has filed Form S-1 with the Securities and Exchange Commission in confidence, suggesting that the company is preparing to sell a publicly traded stock through an IPO. Coinbase Announces SEC Registration …
What are non-fungible tokens (NFTs)?
Tokenization works well for commodities like fiat currencies, gold, and physical land. By displaying a fungible asset on the blockchain, goods can be traded around the clock via limitless and smooth transactions. Fungible goods are …
Coinbase Ventures supports Acala on Polkadot
According to a blog post by the company, Coinbase Ventures is funding Acala, a DeFi hub for the Polkadot network. Coinbase will support Acala “This week is the investment arm of …