(Photo by Chesnot/Getty Images) 'Will be worth more than Goldman Sachs'Įven staunch cryptocurrency proponents, however, have noted that Coinbase's recent, rapidly growing results could be subject to volatility due to competition and price changes in digital assets. In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin, is displayed in front of the home page of the Coinbase cryptocurrency exchange website on April 12, 2021. More than 43 million retail users and 7,000 institutions use the Coinbase platform, the company added.įor the first quarter of fiscal 2021, Coinbase estimated it would post net income of between $730 million and $800 million, compared to net income of just $32.26 million in the first three months of 2020. On the bottom line, Coinbase swung to a profit of $322.3 million for the full year 2020, versus a net loss of $30.4 million in 2019. "These markets and asset classes collectively represent hundreds of trillions of dollars of value today."Ĭoinbase, for its part, makes the vast majority of its money via transaction fees from trades on its platform by retail and institutional users. The unique properties of crypto assets naturally position them as digital alternatives to store of value analogs such as gold, enable the creation of an internet-based financial system, and provide a development platform for applications that are unimaginable today," Coinbase said in its prospectus. "Crypto has the potential to be as revolutionary and widely adopted as the internet. The boom in demand for digitally native, non-interchangeable assets has been further underscored by the rise in non fungible tokens (NFTs) in the digital art and collectibles world, most of which have been built on the ethereum blockchain. "Given the still nascent and volatile nature around Bitcoin we believe less than 5% of public companies will head down the Bitcoin investment path in some capacity over the next 12 to 18 months, but could move markedly higher as more regulation and acceptance of this currency takes hold further down the road."īitcoin prices reached a record high of more than $64,000 on Wednesday, and comprise most of the total cryptocurrency market capitalization of over $2 trillion. "Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of bitcoin and crypto for the coming years in our opinion," Wedbush analyst Dan Ives wrote in a note. Companies including Tesla ( TSLA), Square ( SQ), BNY Mellon ( BNY) and PayPal ( PYPL) have either added significant holdings of bitcoin to their balance sheets or begun facilitating transactions in cryptocurrencies, and legacy banks Morgan Stanley ( MS) and Goldman Sachs ( GS) recently announced they would begin offering bitcoin exposure to their wealth management clients. this year, with public and institutional interest in cryptocurrencies swelling in recent months. The public debut was one of the most highly anticipated in the U.S. Coinbase's direct listing differed from a traditional initial public offering in that no new shares were issued in the process, with existing shareholders instead directly selling the stock to the public.Ĭoinbase, the largest cryptocurrency exchange in the U.S., hit the public markets amid a record-setting rally in cryptocurrency prices and broadening adoption of digital assets. The stock was given a reference price of $250 per share on the Nasdaq on Tuesday, though no shares traded hands at that price.
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