Breaking: Coinbase confirms going public with $8 billion valuation; provides revenue breakdown

On 26th October, Coinbase confirmed that the company is raising an Initial Public Offering of $500 million at a valuation of $8 billion. The news which has been doing rounds for the past 24 hours was finally confirmed by Ran NeuNer, where he elucidated on the financial breakdown of the IPO as well as more information on Coinbase’s move.

The valuation is predicted to be in the range of $7.2 – $8 billion, which is a mammoth amount with an initial public investment of $500 million. The IPO will be done in two rounds comprising of preferred equity as well as common stock. According to sources close to Coinbase but who is not part of the team right now, the IPO is predicted to beat all market predictions.

As of now, Coinbase, which is the largest cryptocurrency exchange in terms of user, has 25 million users in its fold. There is $7 million in fiat of cryptocurrency with almost 600,000 active traders on the platform every single day. Sources have also stated that Coinbase is available in over 32 countries with a lion’s share of 75% of the total market.

CryptoTrader also spoke about the all-important revenue numbers of Coinbase that has led up to the IPO. Reports show that the cryptocurrency exchange earned $90 million in the last quarter, with the record held by the 4th quarter in 2017. Q4 for Coinbase raised an astronomical amount of $450 million, which was attributed to the cryptocurrency boom which saw the price of Bitcoin [BTC] break the $19,000 barrier.

Next, the reports talked about the revenue sources of Coinbase. It stated that 80% of the total Coinbase revenue was generated by consumers, 15 percent was from Coinbase Pro, which is the institutional investor aspect of Coinbase. The remaining 5% of the revenue has come from other miscellaneous sources, stated the reports.

Ran NeuNer also teased users and investors by stating that Coinbase is rumored to start a custodian solution with many more projects in its developmental pipeline. NeuNer also spoke to Adam Draper, one of the initial investors in Coinbase, who has put in $10 million into Coinbase’s latest IPO.

Draper was of the opinion that Coinbase CEO, Brian Armstrong was going to make Coinbase the biggest company on the planet because of the mantra “at some point in time, the entire world has to be on one financial infrastructure and Coinbase will be that exact platform”.

Draper also stated that there was a demand to exit the market right now but he would rather stay in and invest more. He further added:

“I honestly believe Coinbase will be one of the first ten companies to reach trillion dollar valuation.”