Coinbase releases massive Q1 performance ahead of its April 14 direct listing.

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Coinbase is flying heavy on the most recent cryptocurrency market cycle.

Coinbase, an American cryptocurrency exchange, has released its first-quarter earnings estimates ahead of its expected listing on the Nasdaq stock exchange later this month. If the cryptocurrency hype continues, the business may have a major debut.

In the three-month period ending March 31, 2021, Coinbase said it generated estimated revenue of $1.8 billion with a net income of approximately $730 million to $800 million.

Coinbase has 56 million confirmed users and 6.1 million monthly transacting users, which are both interesting metrics (MTUs). Platform investments totalled $223 billion, up from $90.3 billion at the end of 2020, which accounted for 11.3 percent of all cryptocurrency market cap.

Coinbase said trading volume reached $335 billion, compared to $193.1 billion at the end of the previous quarter, per its S-1 filing with the SEC.

Since the end of 2020, the crypto industry has been riding a monster surge, which is mirrored in Coinbase’s excellent Q1 forecasts. Nonetheless, the exchange is aware of industry volatility and states that they “intend to prioritise investment, even during times where the Bitcoin price – fall.”

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Looking forwards to the rest of the year, Coinbase outlined three potential paths the annual average MTUs could take:

  1. High: 7.0 million MTUs on average in 2021. This scenario assumes a rise in crypto market capitalisation and moderate-to-high volatility in crypto asset prices. In this case, we anticipate that MTUs will begin to rise over the rest of 2021.
  2. Mid: 5.5 million MTUs on average in 2021. This example assumes a flat crypto market capitalisation and low-to-moderate fluctuations in crypto asset prices. This example predicts a slight decrease in MTUs beginning in Q1 2021.
  3. Low: 4.0 million MTUs on average in 2021. This scenario suggests a substantial drop in crypto market capitalisation, close to the drop seen in 2018, and subsequent low levels of crypto asset price volatility. In this case, we expect MTUs will decline in a similar fashion and end 2021 at levels comparable to Q4 2020.

Coinbase intends to avoid a conventional IPO and instead list its shares on the Nasdaq under the ticker symbol COIN on April 14.

Images courtesy Useacoin, Wit Olszewski

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