Crypto-friendly trading platform eToro reportedly targets an $5 billion IPO in 2021. According to Israel media Calcalist, Israel-based eToro is in talks with Goldman Sachs about possibly leading the IPO on Nasdaq.
eToro plans to complete the IPO during the second quarter of 2021. Additionally, eToro is also examining the possibility of completing a SPAC (special-purpose acquisition company) merger.
As the trendiest IPO route in the US stock market, SPAC merger allows a company to merge with a publicly traded SPAC, and become a listed company in lieu of executing its own IPO.
According to a report this August, eToro’s market valuation tripled in two years to reach $2.5 billion.
Positioning itself as a social investing platform, eToro offers commission-free investing services in stocks, commodities, and cryptocurrencies. Founded in 2007 by brothers Ronen and Yoni Assia, it has raised $272 million to date in eleven funding rounds. Its investors include Digital Currency Group, SBI Group, Chemi Peres, Ping An Insurance, and China Minsheng Financial.
Crypto Trading Platforms Cashing in IPO Trend
eToro said it experienced a sharp increase in the number of users and volume of trading in shares on its platform since the pandemic outbreak.
It has recruited 5 million new customers since the beginning of the year, to 17 million registered customers in total. In addition, eToro’s revenue doubled to $500 million, and it is profitable.
The company declined to comment on the article, Calcalist said. But CoinTelegraph reported that eToro’s employees shared the Calcalist article on LinkedIn, apparently with the blessing of CEO Yoni Assia.
Crypto companies are cashing in the Bitcoin rally in 2020, which skyrocketed 278% in 2020. At the time of writing, Bitcoin is trading at $27,961, after hitting a new all-time high at $28,335.
Crypto exchange giant Coinbase also filed with the United States Securities and Exchange Commission (SEC) to go public in 2021.