After reading the reports that COINBASE has released for the first quarter of 2021 or Q1 all I can say is wow.Based on the numbers alone it is clear that Coinbase is on the right track to be listed directly on the Nasdaq in the near future.In recent history, IPO's have tended to be for companies that were not profitable or were just barely profitable, and Coinbase bucks this trend.
The year-over-year estimates released showed a NINE FOLD INCREASE from $190.6 million to $1.8 BILLION.The numbers are really astonishing, and I'm stunned.Coinbase had previously told investors that they were profitable last year and made tens of millions of dollars while they were investing in increased security for the platform. This quarter's net income is expected to spike from $39.1 million to between $730 and $800 million this quarter.
These are not numbers that recent tech companies have offered.A number of companies have been going public over the past few months via a security listing to lock in financing. Coinbase, however, chose to avoid going public through a security listing.If you did not know a direct listing allows current shareholders to be able to sell their shares from the first day of trading. In a traditional IPO, lockup periods exist that prevents the founders and early investors from cashing out.
While a ton of crypto users do not like Coinbase due to its fees and centralized structure it has served a really important purpose in getting crypto as big as it is in the United States.In addition, Coinbase has been facilitating some of the major corporate purchases in the news recently.Now with them being trendsetters with the IPO institutional interest will continue to grow which will end up benefitting all of those involved.
Even the companies and investment firms that do not exactly like crypto right now are going to be interested in these numbers.This is an incredible number for a technology-based new company, but it's fantastic nonetheless.For the big financial firms though money talks at the end of the day. These firms we imagine as old-school have had to keep up with the times over the year and years that they have been around and it's not like they are going to turn down a money maker just because they do not like the idea.
Like always do your own research!My goal is not to give financial advice but rather to follow the news and markets.