Coinbase starts trading on the Nasdaq Exchange next week, and hype is already building around the Coinbase IPO. Ahead of the big COIN stock debut, the leading crypto exchange gave investors a sneak peek. So what should you know about the Q1 update now?
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As a quick recap, Coinbase is the leading cryptocurrency exchange in the United States. Through its platform, investors have access to Bitcoin (CCC:BTC-USD) and several other popular tokens.
More importantly, the Coinbase IPO comes at a time of great relevance for the cryptocurrency space. Bitcoin is close to its all-time highs, and the crypto market just hit a total value above $2 trillion. Trading so far this week has seen altcoins simply skyrocket.
For investors, this means that COIN stock holds a lot of promise. It also means that a move by Coinbase to voluntarily share its first-quarter performance is extremely important.
Here are the top five Q1 takeaways ahead of the Coinbase IPO:
- Revenue soared in the first quarter to $1.8 billion, up from just $190.6 million in Q1 2020.
- Net income grew to a range between $730 million and $800 million. This is also a major jump from $31.9 million in 2020.
- Additionally, Coinbase saw significant user growth at the start of 2021. Right now, it has 56 million total users on its trading platform.
- Active monthly users are also climbing, up to 6.1 million in the first quarter from 2.8 million at the end of 2020.
- Lastly, Coinbase is looking to big growth once COIN stock starts trading. The company said it anticipates meaningful revenue, user and net income growth through the rest of 2021.
What to Know Ahead of the Coinbase IPO
So what else should you know about the Coinbase IPO and COIN stock? Based on the first-quarter update, there are two other takeaways for investors.
The first comes from its plans for growth. As Ari Levy and Kate Rooney wrote for CNBC, the company currently gets much of its revenue from users who trade and store Bitcoin and Ethereum (CCC:ETH-USD). Moving forward however, Coinbase sees a different path. The company said it wants to expand into a broader home for crypto assets. On that note, it stirred up attention in recent weeks when Coinbase Pro rolled out access to Cardano (CCC:ADA-USD).
The other thing to watch right now is the volatility of crypto prices. There is no denying that Coinbase rests on interest in cryptocurrencies, which have seen wild price swings. The company recognizes that, and is making it clear to investors in its Q1 update. Once COIN stock starts trading, investors should look out for this. During downturns in Bitcoin, Coinbase says it plans to focus on investments to help it scale and succeed.
You can read more about the Coinbase IPO date and price range here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.