Coinbase reveals $1.8 billion in Q1 earnings just days ahead of public listing

Coinbase released its Q1 earnings report, along with the company’s expected future growth plans for new features and supported assets in 2021.

Coinbase expects more growth for the rest of 2021

Major cryptocurrency exchange Coinbase announced its Q1 earnings results, with a total revenue of roughly $1.8 billion, up from around $190 million in the first quarter of last year. The company’s net income for the quarter is estimated between $730 million to $800 million. 

On top of the company’s financial performance in Q1, Coinbase estimates that its verified user count reached 56 million, up from 43 million at the end of last year. Coinbase’s monthly transacting users extended to 6.1 million. Surging cryptocurrency prices have also driven attention to Coinbase’s user base, as CFO Alesia Haas mentioned. 

Trading volume has seen a massive uptick, as the company estimated $335 billion in trading volume in Q1, compared to the $89 billion in volume recorded in Q4 last year. 

Ahead of the company’s public listing, Coinbase predicts even higher numbers for 2021. The official announcement said:

We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class. However, our institutional revenue is inherently unpredictable.

All eyes are on Coinbase as it approaches its direct listing scheduled on April 14 on the Nasdaq. Coinbase had reached an implied $68 billion private market valuation, based on the share price of $343.58, as revealed in an updated filing. 

Coinbase estimates that $35 million will be used as part of the one-time expenses for the company’s direct listing on April 14. 

Brian Armstrong, CEO of Coinbase, expects the company to target “anyone with a smartphone,” comparing the current cryptocurrency industry to that of e-commerce in the late 1990s. Armstrong said:

We think that, as innovation continues to rapidly transform and grow the crypto economy, we will see crypto take up a substantial portion of economic activity over the next decade.

The crypto exchange’s recent acquisition of Bison Trials will help the company better serve institutional investors. Contributing to the development of Bitcoin and cryptocurrency regulations, Coinbase joined three other prominent partners in the industry to form the Crypto Council for Innovation. The organization aims to lobby on behalf of the crypto industry.