Just buying and holding Bitcoin (BTC) in 2013, the largest cryptocurrency exchange in the United States could have made more money.

Data circulating on social media shows that although Coinbase achieved a profit of $800 million in the first quarter, if the company uses seed funds to buy BTC, it will still become richer.

Coinbase caused fishermen to lose profits in 2013
Coinbase reported substantial revenue this week before its IPO on April 14. Revenue in the first quarter was $1.8 billion, exceeding the full year of 2020.

As market participants assess the potential impact of IPOs, these numbers have become an urgent topic of discussion. Other IPOs, including the recent Deliveroo auction, also contributed to the auction.

With soaring valuations and related hype, all Coinbase seems to have to do is buy Bitcoin.

Specifically, if converted to BTC at that time, the initial stock exchange funds of 30 million USD in 2013 will be worth up to 2 billion USD.

In contrast, Coinbase’s total lifetime revenue to date is estimated to be between US$780 million and US$1.3 billion.

1-month BTC/USD candlestick chart (Bitstamp). Source: Tradingview
Developer Vijay Boyapati commented: “Coinbase will be listed in less than 10 days, and the explosive number reported today (approximately 800 million revenue versus 1.8 billion revenue)

“It sounds cool, but imagine how much they would be worth if they kept their earnings in #Bitcoin instead of U.S. dollars for the past 8 years.”
According to Cointelegraph, the compound annual growth rate of Bitcoin has exceeded 200%, and since April 2013, BTC/USD has increased by more than 43,000%.

Bitcoin shortage still exists
Boyapati examines another more controversial aspect of Coinbase’s business model this year. Despite all the successes, executives have always chosen to keep a fairly small amount of BTC.

According to documents recently submitted to US regulators, the exchange holds 4,486 BTC. In contrast, Boyapati pointed out that although it is not a stock exchange, novice MicroStrategy has purchased more than 91,000 BTC since August last year-so far, the company’s U.S. dollar share price has doubled.

“It’s like Coinbase doesn’t even believe that the industry is one of the biggest players in the industry. Sadly.”

Not everyone believes it. Eric Voorhees, founder of the cryptocurrency exchange service ShapeShift, believes that Coinbase’s contribution to the cryptocurrency phenomenon makes it unmatched by MicroStrategy.

“Imagine that MicroStrategy is rated higher than Coinbase. Casa founder Jameson Loeb tweeted that the latter struggled for eight years to create the most successful Bitcoin company in the world, with 50 million people service.

“Check out the first Bitcoin in 2020 and buy the bundle on Coinbase.”

Bitcoin exchange exchanges against BTC/USD. Source: Ki Young Ju / Twitter
At the same time, Wednesday’s data showed a significant increase in currency outflows this week, indicating the rapid growth of long-term corporate groups and the general interest in buying Bitcoin.

“Are we in a high market cycle? No,” Analytics Service CEO Ki Yong Ju commented on CryptoQuant, where the data was released, highlighting the difference between the current climate and the peak of the traditional Bitcoin cycle.

“When the market reaches its peak, everyone will deposit bitcoin on the exchange to sell it.”
The single transaction volume of Coinbase Pro, the professional trading department of Coinbase, reached 12,000 BTC.

Source: CoinTelegraph