Michael Saylor: The listing of Coinbase will attract more institutional investors

As a leader in payment networks, value stores, and emerging digital asset categories, Bitcoin’s value is directly related to the accelerated growth of Coinbase. Especially now, the release of Coinbase’s exciting and highly anticipated public listing plan has arrived.

MicroStrategy CEO Michael Saylor said that Coinbase currently adds about 1 million new users every week and its digital assets are close to 10 billion U.S. dollars. There is a reason for this.

He pointed out that “this direct listing will sound a wake-up call to institutional investors, financial advisors and investment banks around the world.”

Saylor and Amy Butte, an expert on emerging financial markets, were interviewed by CNBC’s Squawk Box. Butte said that the combination of Bitcoin technology and Coinbase’s public listing news is a real innovation in the field of financial services.

She further pointed out that in the past three months, financial institutions have invested heavily, and the effect of this innovation is obvious.

“In the past 3-4 months, institutions and companies have participated in the cryptocurrency market, and they have stated that they want to use cryptocurrency as part of the national treasury.”

Four months after the official announcement of its plan in December 2020, Coinbase will officially go public on April 14. At the time, the popular US crypto exchange Coinbase was valued at approximately US$25 billion, with a total turnover of approximately US$320 billion.

However, by mid-March 2021, Coinbase’s valuation is estimated to be approximately US$68 billion. This valuation is based on the quarterly average share price quoted in the revised document submitted by Coinbase to the United States Securities and Exchange Commission (SEC).

The latest valuation estimates that Coinbase is conservatively valued at between US$19 billion and US$230 billion, which shows that despite the excitement, financial institutions are still considering the volatility risks associated with the cryptocurrency industry.

However, Coinbase expects more institutional investors will enter the market in 2021. Coinbase recently announced its first quarter 2021 performance and its outlook for 2021.

The exchange reported that it has verified 56 million users, has 6.1 monthly active users, holds $223 billion worth of encrypted assets, and has a market share of approximately 11.3%, of which approximately $122 billion of assets come from institutional investors.

Coinbase transactions totaled 335 billion U.S. dollars, total revenue was 1.8 billion U.S. dollars, net income was 730 to 800 million U.S. dollars, and adjusted profit before tax, interest, depreciation and amortization was approximately 1.1 billion U.S. dollars.

“Considering the increased interest of institutions in the digital asset category, we expect that in 2021, driven by trading and custody revenue, performance will achieve meaningful growth.”

(Note: There is less than 24 hours from now until the first public listing of Coinbase, a cryptocurrency exchange, and Nasdaq earlier gave Coinbase a reference price of $250 per share, which will make its market value completely diluted. It reached 65.3 billion U.S. dollars on a basic basis. But if its market value can exceed 100 billion U.S. dollars, it will immediately become one of the 85 most valuable companies in the United States.)