Coinbase has emerged as one of the biggest winners in the cryptocurrency space — revealing that it made $322 million in profit during 2020.
Having recently been valued at $100 billion, the crypto giant is going from strength to strength as interest in digital currencies continues to grow.
The success of Coinbase has been largely attributed to the recent Bitcoin bull run, which saw prices surge from around $10,000 in September 2020 to over $30,000 before the year was over. BTC then raced to $58,000 this month.
As the pandemic continued, investors looked for a safe haven to store their money, while the number of retail investors surged.
In 2019, Coinbase had suffered a loss of $30 million, but 2020 proved to be a pivotal moment — allowing the company to earn huge profits from trading commissions thanks to the wealth of new interest in crypto on every level.
Coinbase disclosed the figures in an S-1 regulatory filing and is currently preparing to go public via its much-anticipated listing on the NASDAQ. Right now, shares have been trading on private exchanges at about $300, which hints at the price they may sell for on the open market.
A Big Announcement
On Wednesday, Coinbase revealed that it has held Bitcoin and other crypto assets on its balance sheet since it was founded in 2012 — funds that will likely have appreciated dramatically over the past nine years. In a blog post that was designed to attract the attention of financial institutions, the company said:
“We plan to maintain an investment in crypto assets as we believe strongly in the long-term potential of the crypto economy. Investing in crypto assets required us to develop new investment, accounting and tax policies, as well as ensure we established a control environment for purposes of receiving unqualified audit opinions on our financial statements. Much like we have with Coinbase Custody, we’re happy for others to benefit from our experience.”
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