It’s been a big year for Coinbase. The cryptocurrency exchange went public on April 14th, 2021, via a direct listing on the NAsdaq.
Since then, Coinbase’s stock has soared, giving the company a market capitalization of over $100 billion.
This has led many investors to wonder: will Coinbase stock pay dividends?
It’s a fair question. After all, Coinbase is now one of the most valuable companies in the world.
And many public companies pay dividends to shareholders.
However, it’s important to remember that Coinbase is a young company. It was founded in 2012 and only went public this year.
NOTE: WARNING: Coinbase does not currently pay dividends. Investing in Coinbase stock is a risky endeavor, and you should not expect to receive any dividends from your investment. You may also be subject to additional taxes based on the sale of your Coinbase shares, so be sure to consult a financial professional before investing.
That means that it doesn’t have a long track record of profitability.
And, indeed, Coinbase has yet to turn a profit on a GAAP basis. In 2020, the company lost $322 million.
Of course, Coinbase is growing rapidly. Its revenue tripled in 2020 to $1.
28 billion. And its user base is also growing rapidly, from 43 million in Q4 2019 to 56 million in Q4 2020.
So there’s a chance that Coinbase could become profitable soon and start paying dividends to shareholders. However, it’s also possible that the company will continue to invest heavily in growth and forego profits (and dividends) for the foreseeable future.
Only time will tell what Coinbase will do with its newfound wealth. But for now, investors should not expect the company to start paying dividends any time soon.
5 Related Question Answers Found
As one of the largest cryptocurrency exchanges in the world, Coinbase has been a reliable place to buy and sell digital assets since its launch in 2012. In recent years, Coinbase has also become a popular platform for institutional investors to trade cryptocurrencies. Now that Coinbase is public, will it be profitable?
Coinbase Pro is a popular cryptocurrency exchange that allows users to buy and sell digital assets. The exchange is operated by Coinbase, one of the most well-known and reliable names in the industry. Coinbase Pro is a great choice for those looking for a safe and secure platform to trade on.
It’s no secret that Coinbase is one of the most popular cryptocurrency exchanges. But can they take your money? The answer is yes and no.
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As one of the most popular cryptocurrency exchanges, Coinbase has been expanding its services over the years. Most recently, they launched Coinbase Earn, a new program that allows users to earn cryptocurrency for taking certain actions. So, is Coinbase Earn free money?
