Coinbase Discloses $1.28 Bln in 2020 Revenue in its Filing to Go Public on Nasdaq
The exchange also reported 43 million verified retail users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries. In terms of coin storage, BTC has the highest share at 70%, but it remains the same, unlike ETH, whose share jumped 4%.
San Francisco-based cryptocurrency exchange Coinbase filed with the US Securities and Exchange Commission (SEC) to go public on Nasdaq via a direct listing. The document reads,
“While the internet has transformed how we communicate and purchase goods and services, the existing financial system has hardly changed. We have reached a tipping point for the need for a new, natively digital financial system.”
The company will have two classes of common stock, Class A and Class B, with the rights of their holders identical except with respect to voting and conversion rights.
The prospectus shared with the SEC is part of Coinbase’s registration statement on Form S-1 using a “shelf” registration or continuous offering process, under which registered stockholders may, from time to time, sell the Class A common stock.
In its filing, Coinbase disclosed that they have 43 million verified retail users in Q4 2020, up from 32 million in Q4 of 2019 and 26 million in Q4 of 2018.
2.8 million monthly transacting users were also reported in 4Q20, which had increased from 1 million during the same period in the previous year. These numbers are near to those recorded in Q1 of 2018 at 2.7 million MTUs.
The company also reported 7,000 institutions and 115,000 ecosystem partners in over 100 countries.
As of December 31, 2020, the company had $456 billion in total trading volume in its entire lifetime so far and $90 billion in assets on the platform. Median quarterly trading volume increased from $17 billion to $21 billion to $38 billion in 2018, 2019, and 2020, respectively.
When talking about its competition, the exchange said they compete against a growing number of decentralized and noncustodial platforms as such presenting a risk if “we fail to compete effectively against them.”
Coinbase generated more than $3.4 billion in total revenue, since its inception, largely from transaction fees. Interestingly, 2020’s transaction revenue represented over 96% of their all-time net revenue.
The exchange generated a total of $1.3 billion in revenue, up from $533.7 million the previous year. “A majority of our net revenue is from transactions in Bitcoin and Ethereum,” notes the company.
While Bitcoin BTC -3.67% Bitcoin / USD BTCUSD $ 47,142.89
-$1,730.14-3.67% Volume 54.21 b Change -$1,730.14 Open $47,142.89 Circulating 18.64 m Market Cap 878.68 b
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-$101.65-6.85% Volume 24.14 b Change -$101.65 Open $1,483.90 Circulating 114.82 m Market Cap 170.38 b
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Interestingly, a fewer number of people traded BTC this year, recording a 17% drop, while ETH saw just a 1% rise to 15%. In comparison, other assets account for 44% of Coinbase’s trading volume concentration in 2020.