Cryptocurrency exchange, Coinbase released its estimated financial results for the first quarter which ended 31 March 2021. The US-based company mentioned that it has more than 56 million verified users.
According to the official announcement, the total trading volume on the platform reached $335 billion in Q1 of 2021. The cryptocurrency exchange reported a revenue of nearly $1.8 billion during the first three months of 2021.
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Coinbase mentioned that the total cryptocurrency assets on its platform reached $223 billion, which is around 11% of the total market cap of digital currencies. The number includes around $122 billion worth of digital assets from institutional clients.
In addition, the company reported a net income of approximately $730 million to $800 million, a significant jump compared to Q1 of 2020. The adjusted EBITDA of Coinbase touched $1.1 billion during the first quarter of 2021.
Commenting on the cryptocurrency price cycles, Coinbase mentioned that the company will create long-term value throughout the price cycles.
“Crypto markets have observed four major price cycles since 2010 which have typically had durations ranging from two to four years. On average, these price cycles have increased the overall crypto market capitalization significantly from the prior cycle and attracted new users into the crypto economy. These cycles can be highly volatile, and as a result, we measure our performance over price cycles in lieu of quarterly results. We believe that we can create long-term value throughout these price cycles,” Coinbase mentioned.
Moreover, the cryptocurrency exchange reported 6.1 million monthly transacting users (MTUs).
During an announcement earlier this month, Coinbase highlighted that the company is expecting the trading of its Class A stock to start on 14 April. Coinbase stock will be available under the ticker symbol of COIN. Coinbase is one of the largest cryptocurrency exchanges in the world. Founded in 2012 by Brian Armstrong, the digital exchange has grown significantly in the last few years.
“We expect meaningful growth in 2021 driven by transaction and custody revenue amid increased institutional interest in the crypto asset class,” the exchange mentioned in the official announcement.