Updated quarterly. Last updated: August 16, 2021.
|Industry||Financial services (crypto)|
|IPO Date||April 14, 2021|
|TTM Revenue||$4.9 billion|
|TTM EBITDA||$1.7 billion|
|TTM FCF||$9.7 billion|
What Coinbase Does
Coinbase lets people buy and sell cryptocurrency.
It has three sets of customers:
- Retail users
- Institutions like hedge funds and corporations
- Ecosystem partners like developers and coin issuers
They support over 90 cryptocurrencies, including Bitcoin, Etherium, Litecoin, and others.
Coinbase's product portfolio
If you want to dig deeper into each of these products, go to page 141 of Coinbase's S-1.
How Coinbase Makes Money—Its Business Model
Coinbase makes money two ways:
- Transaction revenue
- Subscription and services revenue
Why these two metrics are important: Transaction revenue is volatile. It often follows the price of Bitcoin, which isn't ideal.
Eventually, they want other revenue sources not tied to the price of Bitcoin.
Transaction vs. subscription revenue
Transaction revenue breakdown
- Transaction Revenue: Fees earned when customers trade on its platform. The fee is based on the price and quantity of the crypto asset bought, sold, or withdrawn.
Subscription and services revenue breakdown
- Custodial: Fees earned from cold storage services.
- Staking: Fees earned when Coinbase creates or validates a block (files). Staking revenue is based on the quantity, price, and rewards rate of the staked crypto asset. Read this for more details. (They started grouping Staking revenue with Blockchain Rewards)
- Earn Campaign: Coinbase helps new companies educate their customers through courses. Coinbase earns a commission when a customer completes a course. Here are some examples.
Coinbase's Key Business Metrics
Coinbase tracks four metrics to measure the health of its business.
- Verified users
- Monthly transacting users (MTU)
- Trading volume
- Assets on platform
Verified and monthly transacting users
- Verified Users: Retail users, institutions, and ecosystem partners with a registered account and confirmed their email address or phone number. Verified users are the top level of its customer acquisition funnel. The goal is to convert them into monthly transacting users (MTU).
- Monthly Transacting Users (MTU): A user who transacts on the Coinbase platform at least once during a rolling 28-day period.
Trading volume (retail vs. institutional)
Trading volume breakdown
Assets on platform (retail vs. institutional)
- Assets on Platform: The total value of both fiat currency (U.S. Dollars) and crypto-assets held or managed in digital wallets on the Coinbase platform, including their custody services (cold storage).