Crypto exchange unicorn Coinbase’s S-1 registration statement filed with the US Securities and Exchange Commission – a critical 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 operations, with the disclosures basically serving as a pitch to investors. A confidential draft of the document was filed with the SEC in mid-December and has now been approved by the SEC.
In addition to other details included in the document, Coinbase posted $ 1.1 billion in net revenue for 2020. In comparison, Coinbase noted that it brought in $ 482.9 million in net revenue in 2019.
Coinbase reported operating expenses of $ 868.5 million, up from $ 579.5 million the year before, according to the filing.
Ultimately, 2020 was a positive year for Coinbase in terms of profit, with revenues of $ 322.3 million after a loss of approximately $ 30 million in 2019.
As Coinbase noted:
“We have grown rapidly and capital-efficiently since our inception. For the years ended December 31, 2020 and December 31, 2019, we generated total revenue of $ 1.3 billion and $ 533.7 million respectively, with a net profit (loss) of $ 322.3 million and $ (30.4) million, and Adjusted EBITDA of $ 527.4 million and $ 24.3 million, respectively. “
The disclosure marks a milestone for Coinbase, the premier US crypto exchange 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 catering to the likes of Tesla and other deep-seated buyers through its brokerage service.
In the days and weeks leading up to today’s reveal, speculation about Coinbase’s valuation arose from chatter about its secondary offerings on Nasdaq Private Market. As The Block previously reported, Coinbase’s stock landed at a valuation of $ 100 billion in light of those erased transactions.
The filing lists a who’s who of Wall Street giants as advisers to the deal, including Goldman Sachs, Citigroup, JPMorgan and Allen & Co.
Digging the details
Coinbase’s S-1 contains numerous details about the company’s growth circle, 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 it had 2.8 million “transaction customers” on its platform at the end of 2020, compared to 1 million such customers at the end of last year.
This story is under development and will be updated with additional information.
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