The value of Bitcoin as a payments network, store of value, and leader in an emerging digital asset class is directly correlated to Coinbase's accelerated growth, especially now,Coinbase's exciting and highly anticipated public listing announcement has arrived.
Michael Saylor, CEO of MicroStrategy, said that there is a reason why Coinbase currently adds about 1 million new users every week, and its digital assets are nearly 10 billion US dollars.
He noted that "this direct listing will be a wake-up call for institutional investors, financial advisors and investment banks around the world."
Saylor and emerging financial markets expert Amy Butte spoke to CNBC's Squawk Box. Butte said,Bitcoin technology combined with Coinbase public listing news is a true innovation in financial services.
She further pointed out that the effect of this innovation is evident with the heavy investment of financial institutions in the past three months.
“Over the past 3-4 months, institutions and businesses have participated in the cryptocurrency market, and they have indicated that they want to use cryptocurrencies as part of the national treasury.”
Four months after officially announcing its plans in December 2020, Coinbase will officially go public on April 14. At the time, popular U.S.-based crypto exchange Coinbase was valued at about $25 billion, with a total turnover of about $320 billion.
However, by mid-March 2021, Coinbase's valuation is estimated to be approximately $68 billion. This valuation is based on the quarterly average share price cited in Coinbase's revised SEC filings.
The latest valuation estimates that Coinbase is conservatively worth between $19 billion and $230 billion, suggesting that despite the excitement, financial institutions are still considering the volatility risks associated with the cryptocurrency industry.
However, Coinbase expects more institutional investors to enter the market in 2021, and Coinbase recently announced its first-quarter 2021 results and outlook for 2021.
The exchange reported that it has 56 million verified users, 6.1 monthly active users, and holds $223 billion worth of crypto assets, or roughly 11.3 percent of the market, with about $122 billion of those assets coming from institutional investors.
Coinbase’s transaction volume was $335 billion, gross revenue was $1.8 billion, net income was $730-800 million, and adjusted EBITDA was about $1.1 billion.
“Given increased institutional interest in the digital asset class, we expect meaningful growth in performance in 2021, driven by trading and custody revenues.”
(Remarks: There are less than 24 hours between now and the initial public listing of the cryptocurrency exchange Coinbase. Nasdaq earlier gave Coinbase a reference price of $250 per share, which would make its market value in fully diluted reached 65.3 billion US dollars on a basic basis. ButThe original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.。）
The original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
