Coinbase Global, Inc. (COIN) today issued estimated results for its first quarter ended March 31, 2021 and an outlook for the full year ending December 31, 2021.
For the first quarter of 2021, the Company currently expects the following as of or for the three months ended March 31, 2021:
- Verified Users of 56 million
- Monthly Transacting Users (MTUs) of 6.1 million
- Assets on Platform of $223 billion, representing 11.3% crypto asset market share
- Includes $122 billion of Assets on Platform from Institutions
- Trading Volume of $335 billion
- Total Revenue of approximately $1.8 billion
- Net Income of approximately $730 million to $800 million
- Adjusted EBITDA of approximately $1.1 billion
*This information is based on information available to the Company as of the date of this release and is subject to the completion of its quarterly financial closing procedures and review by the Company’s independent registered public accounting firm.
Our approach to public outlooks will be to provide transparency consistent with the internal plans we use to manage our business. Given the inherent unpredictability of our business mentioned above, we are providing a range of possible scenarios for full-year 2021:
2021 Annual Average MTU possible scenarios
Our transaction revenue is currently highly correlated to MTUs. Looking to full year 2021, we present three possible scenarios for annual average MTU:
- High: Average 2021 MTUs of 7.0 million. This scenario assumes an increase in crypto market capitalization and moderate-to-high crypto asset price volatility. In this scenario, we expect that MTUs continue to grow for the remainder of 2021.
- Mid: Average 2021 MTUs of 5.5 million. This scenario assumes flat crypto market capitalization and low-to-moderate crypto asset price volatility. This scenario assumes a modest decline in MTUs from Q1 2021.
- Low: Average 2021 MTUs of 4.0 million. This scenario assumes a significant decrease in crypto market capitalization, similar to the decrease observed in 2018, and low levels of crypto asset price volatility thereafter. In this scenario, we assume MTUs will decrease in a corresponding manner and end 2021 at similar levels to Q4 2020.
We expect meaningful growth in 2021 driven by transaction and custody revenue given the increased institutional interest in the crypto asset class. However, our institutional revenue is inherently unpredictable given the factors listed above.
CWEB Analyst’s have initiated a BUY Rating for Coinbase Global, Inc. (COIN) and potential upside of $350 in 2021. The fundamentals of the company are to strong and cash on hand has increased . Total Revenue of approximately $1.8 billion is staggering. Coinbase has $335 billion worth of trading volume in the past three months and manages $223 billion in assets.
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