Polychain Capital CEO: Coinbase's valuation has reached $100 billion

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), author: Wang Jiajian, published with authorization.

Editor's Note: This article comes from

Babbitt Information (ID: bitcoin8btc)

Babbitt Information (ID: bitcoin8btc)

, author: Wang Jiajian, published with authorization.

Amid bitcoin's 300 percent surge last year, cryptocurrency trading platform Coinbase is poised to become the next big listing for a fintech company. It recently announced plans for a direct listing, rather than a traditional IPO, with investment banks acting as intermediaries and underwriters, and selling shares directly to the public. Now, Coinbase investors are touting high expectations for its market value. Olaf Carlson-Wee, CEO of crypto investment firm Polychain Capital and first Coinbase employee, said:

"I think Coinbase is worth over $100 billion."

Polychain Capital initially invested in Coinbase in 2017.

“This is the first legal IPO in the entire blockchain space,” he said, citing Coinbase’s sophisticated technology, regulatory clearance and loyal customer base as competitive advantages.

In the last three months of 2020, Coinbase had annualized revenue of $2.3 billion (nearly $600 million per quarter), according to a person familiar with Coinbase's financials. Its net profit margin is more than 20 percent, another person familiar with the matter said. That kind of profitability is on par with incumbent stockbrokers like Schwab, and unusual for a young, fast-growing financial services company. Coinbase declined to comment for this article because it is on the eve of a public market debut during a regulatory "quiet period" for listings.