Cryptocurrency centered companies have been growing like crazy for the last couple of years. The biggest growth they saw was probably last winter when all of the cryptos went crazy with their pricing and increased about 200% on average. The growth was so big that the recent price fluctuations couldn’t even leave a dent in these companies. The best example would be Coinbase as it announced on the 30th of October that it closed a Series E equity round, with more than $300 million. Obviously, it helped pump the crypto exchange’s valuation quite high, to $8 billion to be exact. To put it into perspective, at the beginning of the year, the company was valued at just $1.6 billion.
After all of this success, it is hard to believe that Coinbase is still regarded as a startup and not a sophisticated company. However, being able to retain such a title, gained them entrance in the “rich startup” club, alongside Tiger Global Management, Y Combinator Continuity and etc.
All of these funds will have to go somewhere, and that place would most likely be their global expansion and infrastructure investments. With this they are planning on increasing their market penetration around the world, start featuring even more cryptos and hopefully bring in more institutional investors to the fray.
Interviews with Bloomberg
Bloomberg was able to find out about the company’s future plans through its COO Asiff Hirji. According to Hirji, the company is aware of their demand for investors. They understand that the tech wave is still in full swing and is in no position to start pulling its punches. According to Hirji, the company is aiming at a revenue of $1.3 billion by the end of the year.
According to a document about Coinbase that was reviewed by Bloomberg, the difference between revenues and costs are definitely supporting the company’s goals. But most of the information is still unverified as the company has opted for an internal revenue measurement system, therefore inhibiting the ability of an “outsider” to tell the real difference. Judging by the company’s statement and the document was given to work with, it has been found out that Coinbase is looking at a $400 million in profits alone.
Undercut staff and reasoning
Coinbase also cut off some of its staff from the compliance, customer support, and fraud departments. The news was reported by Yahoo Finance that the estimated amount of the laid off staff is 15. Also, it is important to note that nearly all of them were working remotely. The layoffs could be directly connected to the rumors surrounding Coinbase. According to them, the company is planning on going public and therefore wants a more professional look with its remaining 550 employees working on-site.
Even Coinbase themselves had to come out with an official statement about the whole ordeal. Clearing up the rumors and stating reasons that it was just because of employee effectiveness and productivity that made them lay off some of its staff. Also stating that they will be looking more of a locally based recruitment system directly into their offices.