The S-1 registration statement from Crypto-exchange unicorn Coinbase submitted to the US Securities and Exchange Commission – a major step towards its bid for a direct stock listing on Nasdaq – is now available to the public.
The S-1 offers an unprecedented look at Coinbase’s business, and the disclosures serve effectively as investors. A confidential draft of the document was submitted to the SEC in mid-December and has now been approved by the SEC.
Among other information contained in the document: Coinbase generated $ 1.1 billion in net revenue for 2020. In comparison, Coinbase noted that it generated $ 482.9 million in net revenue during 2019.
According to the submission, Coinbase reported operating expenses of $ 868.5 million, compared to $ 579.5 million the previous year.
Finally, 2020 was a positive year for Coinbase on the profit front, bringing in $ 322.3 million after a loss of approximately $ 30 million in 2019.
As Coinbase noted:
“We have grown rapidly and in a capital-efficient way since our inception. For the years ended 31 December 2020 and 31 December 2019, we generated total revenue of $ 1.3 billion and $ 533.7 million, respectively, net income ( loss) of $ 322.3 million and $ (30.4) million, respectively, and adjusted EBITDA of $ 527.4 million and $ 24.3 million, respectively. ‘
The unveiling is an important moment for Coinbase, the leading crypto exchange in the US that has amassed millions of users and hundreds of millions of dollars in venture capital from some of Silicon Valley’s biggest names in the years since its inception in 2012. Coinbase has also secured a position between the crypto and institutional investment world, by providing a deep pocket like Tesla and other buyers through its brokerage service.
In the days and weeks leading up to today’s unveiling, speculation about the valuation of Coinbase has emerged thanks to chatter about its secondary offering on the Nasdaq private market. As the Block reported earlier, Coinbase’s share ended up at a valuation of $ 100 billion in light of the approved trades.
In the submission, a who’s-who of Wall Street giants is noted as advisers to the deal, including Goldman Sachs, Citigroup, JPMorgan and Allen & Co.
Dig the details
Coinbase’s S-1 contains numerous details about the enterprise’s growth arc, including the number of verified users on its platform.
The company said that ‘[today], our platform enables approximately 43 million retail users, 7,000 institutions and 115,000 ecosystem partners in more than 100 countries to participate in the crypto-economy. ‘
Source: Coinbase S-1
Coinbase further noted that by the end of 2020, it had 2.8 million “transaction customers” on its platform, compared to 1 million such customers at the end of the past year.
This story is evolving and will be updated with additional information.
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