The highly anticipated Coinbase (NASDAQ:COIN) IPO is set to take place next week. The company is seeing its valuation rise dramatically on private exchanges ahead of the IPO.
Here are three SPACs that could be trade ideas for the Coinbase IPO.
Bakkt is a cryptocurrency exchange that launched the first regulated Bitcoin futures exchange. The company also launched the first fully regulated options contract for Bitcoin.
The merger valued the company at $2.1 billion. Shares of VIH traded over $20 in February. With a strong interest in the Coinbase IPO and investors looking for companies with cryptocurrency exchanges, this SPAC could test new highs.
Good Works Acquisition Corp (NASDAQ:GWAC): Crypto mining companies have traded higher in 2021 thanks to the rising price of Bitcoin and interest from retail traders looking for ways to play cryptocurrency. A SPAC deal between Good Works Acquisition and Bitfury will bring Cipher Mining, a subsidiary of Bitfury, public.
Cipher Mining will have a mining capacity of 745 MW by the end of 2025 with a cost of energy of 2.7 cents per kWh. The company plans to add additional data centers in the U.S. from 2021 through 2025.
Cipher Mining could be the leading Bitcoin mining operator with an estimated 9% market share by 2025. The company also plans to roll out financial services, ETFs and a mining-as-a-service business.
The company estimates revenue of $6 million in fiscal 2021 and $350 million in fiscal 2022.
EToro launched Bitcoin trading in 2013 on its platform. In 2020, 44% of assets were in equities, 32% in commodities, 16% in crypto and 8% in currencies.
In 2020, the company added over five million new registered users to end the year with 17.5 million. The company’s total of registered accounts grew in 2021 to 18.7 million in January and 20 million in March.
The company’s users completed an average of eight million monthly trades in 2019 and 27 million monthly trades in 2020.
The company plans to launch stock trading in the U.S. market in 2021 to complement its existing crypto and social trading platforms.
EToro had revenue of $650 million in fiscal 2020, a 147% year-over-year increase. The company is guiding for revenue to hit $1.0 billion in fiscal 2021 and $1.2 billion in fiscal 2022.
With its strong brand awareness and heavy marketing, eToro is quickly becoming known as a stock trading and crypto trading platform. The company could trade higher on a successful Coinbase IPO.
(Photo: Andre Francois McKenzie via Unsplash)
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