Surge in Crypto Trading Fuels eToro’s $4 Billion Ambition Through US IPO
Highlights
- eToro targets a $4 billion valuation with a Nasdaq IPO, aiming to raise $500 million.
- eToro's net income surged to $192 million in 2024, driven by sharp increase in crypto trading.
- A successful IPO could inspire a wave of fintech and crypto companies to go public.
Just a few years ago, social crypto trading platforms hardly received valuations above a few million dollars. Now, the sector is growing exponentially, year on year, churning out unicorns one after the other. A recent addition to the list of billion-dollar social trading platforms, eToro, is now targeting a whopping $4 billion valuation through an initial public offering (IPO) in the United States.
eToro IPO Aims to Raise $500 million
Founded in 2007, eToro is an Israel-based investment company that allows its users to invest in crypto, the stock market, and related assets. It plans to offer 10 million shares, priced between $46 and $50 each, aiming to raise up to $500 million. eToro IPO is intended to list the company’s shares on the Nasdaq Global Select Market under the ticker symbol “ETOR”.
The investors would remember that the previous attempt by the firm to go public via a $10 billion SPAC merger fell through in 2022. However, the recent surge in the crypto market has helped the multi-asset investment platform to revive its attempt to grow into a fintech giant.
Crypto Trading Leads to Surge in eToro’s Income
As per recent reports, eToro earned $192 million in net income during the calendar year ending December 2024, more than ten times what it reported in 2023. This enormous jump in income has been due to the sharp rise in cryptocurrency trading, which accounted for 38% of its overall commissions.
eToro’s US competitor Robinhood has also seen similar success last year. In the last quarter of 2024, Robinhood’s revenue grew substantially to reach $1.01 billion, driven by a sharp increase in crypto revenue by 700% to reach a whopping $358 million.
The eToro IPO is seen as a potential catalyst for a revival in fintech public offerings, which have been subdued in recent months due to market volatility. A successful listing of eToro could inspire other fintech and crypto companies to consider listing in public markets to fuel their growth ambitions.
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