Crypto exchange unicorn Coinbase earned $322.3 million in profit and $1.1 billion in net revenue in 2020, according to its S-1 filing with the U.S. Securities and Exchange Commission ahead of its bid to go public with a direct stock listing on Nasdaq.
The company’s valuation jumped to more than $100 billion ahead of the IPO. It could be the largest valuation of a U.S. tech company since Facebook went public.
The SEC filing showed that both revenue and profit rose in 2020, the first time the company has made an annual profit. Revenue in 2020 more than doubled from $482.9 million in 2019, while profit rose from a $30 million loss position in 2019.
“Coinbase intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol ‘COIN’,” Coinbase said in a Feb. 25 blog post.
The S-1 registration statement filing, which was submitted to the SEC in mid-December, offered a deeper look at Coinbase’s business for investors interested in buying its shares.
Coinbase boasted 43 million users in 2020, with 2.8 million of them transacting each month in 2020, up from about 1 million users in 2019, and a total of $90 billion held in trust.
In total, the SEC filing showed, the company has handled transactions worth $456 billion over its life.
“All of our sources of revenue are dependent on crypto assets and the broader cryptoeconomy. There is no assurance that any supported crypto asset will maintain its value or that there will be meaningful levels of trading activities,” the filing reads.
“We expect our operating expenses to increase significantly in the foreseeable future and may not be able to achieve profitability or achieve positive cash flow from operations on a consistent basis, which may cause our business, operating results, and financial condition to be adversely impacted,” it added.
The company was expected to go public at a $100 billion valuation based on private secondary market trading last week.
Interesting to note was that there was no headquarter address indicated in the company’s filing, said Caitlin Long, founder and CEO of Avanti Bank and Trust, a bank specializing in digital assets.
“INTERESTING: the world truly has changed…no headquarters address for a fully remote company,” Long tweeted @CaitlinLong.
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