Coinbase Global Inc. profited handsomely off bitcoin’s first-quarter rally, bringing in more earnings and revenue in the first three months of 2021 than it did in all of 2020.
The company, which provides a variety of financial services focused on bitcoin and other cryptocurrencies, released estimated results for the first quarter ahead of next week’s highly anticipated direct listing.
It expects to report net income between $730 million and $800 million on revenue of $1.8 billion. By contrast, for all of 2020, the company earned $322 million on revenue of $1.3 billion.
Coinbase, which plans to list its shares publicly on Nasdaq beginning April 14, would be the first major crypto company to go public. Its fortunes are tied closely to the swings of the crypto market; it lists for trading about 50 cryptocurrencies besides bitcoin.
The first quarter saw bitcoin amplify the manic rally of 2020. The price more than doubled, topping out above $61,000. A number of other cryptocurrencies, like ether, also rose sharply amid surging demand and public interest not just in digital money but also in artworks with their own unique tokens, known as nonfungible tokens, or NFTs.