While crypto markets continue their wild ride, eToro is making a bold move to go public. The social trading platform recently filed its registration statement with the SEC, eyeing a Nasdaq listing under the ticker “ETOR.” Big names like Goldman Sachs and Citigroup are handling the books. Remember their failed $10.4 billion SPAC deal back in 2021? Yeah, this time might actually happen.
The numbers look impressive, no doubt about it. Revenue skyrocketed to $12.6 billion in 2024, up from $3.89 billion the previous year. Net income jumped to $192 million from a measly $15.3 million. Sounds great, right? Well, here’s the kicker: a whopping 96% of that revenue came from crypto assets. Talk about putting all your eggs in one digital basket.
Founded in 2007, eToro has built quite the following—38 million users across 75 countries. The platform lets folks trade stocks, commodities, and of course, crypto. Its copy-trading feature is pretty slick. See someone making bank? Just copy their moves. Easy.
With 38 million users worldwide, eToro’s copy-trading makes playing the market as simple as monkey see, monkey do.
But regulatory clouds are gathering. The SEC slapped eToro USA with a $1.5 million fine in September 2024. The charge? Operating as an unregistered broker and clearing agency. They signed the cease-and-desist order without admitting guilt. Classic. Mining economics play a crucial role in determining profitability, with mining pool fees typically taking 1-3% of earnings for participating miners.
Trump’s pro-crypto stance and talk of a U.S. strategic bitcoin reserve have certainly helped pump the market. But crypto’s notorious volatility remains a double-edged sword for eToro. One crypto crash and their numbers could look very different. The company’s IPO could happen as early as Q2 2025 following extensive strategic planning and corporate restructuring.
Market whispers suggest an IPO valuation around $4.5-5 billion, up from their last private valuation of $3.5 billion. Not bad for a company that’s fundamentally a crypto trading platform with some stocks on the side. The current proposed valuation is significantly lower than the previous SPAC valuation of $10.4 billion from their first public offering attempt.
The big question: Can eToro maintain this momentum if the crypto bubble bursts? They’re not saying much about 2025. Smart move, probably. In this market, tomorrow’s anyone’s guess.
