(Bloomberg)– Looks like Wall Street is about to get 100 billion new factors to believe in Bitcoin.Coinbase Global Inc., the fast-growing exchange at the center of the speculative frenzy in cryptocurrencies, is anticipated to go public this week at a staggering evaluation of about $100 billion. That’s more than the age-old New York Stock Exchange and Nasdaq Stock exchange combined– for a company that didn’t even exist a years ago.If all goes according to plan, Wednesday’s arranged direct listing on Nasdaq will seal Coinbase’s position as the Big Board of the U.S. crypto scene and a powerful sign of the risks and rewards of the brand-new period of digital cash. Its creators, Brian Armstrong and Fred Ehrsam, own stakes worth $15 billion and $2 billion, respectively, according to Bloomberg estimates.The bottom line at the San Francisco-based exchange would seem to validate the sky-high evaluation, a minimum of recently. Coinbase stated last week it anticipates to report first-quarter revenue of $730 million to $800 million, more than double what it made in all of 2020. And income in the first three months of 2021 probably surpassed all of the $1.3 billion total for last year. That compares to the $5.6 billion of revenue Nasdaq created last year.Coinbase has 56 million validated users and adds about 13,000 brand-new retail customers a day, according to cryptocurrency analytics firm Messari.”Coinbase is among the most popular cryptocurrency exchanges in the world,” Mira Christanto, an analyst who covers the company for Messari, stated in a research report. “The marketplace has actually shown that financiers are hungry for crypto exposure through equity markets.”It’s an astounding ascent for a company began in a San Francisco house in 2012 by Armstrong and Ehrsam, who fulfilled online in a Bitcoin forum on Reddit. The apparent demand for Coinbase shares mirrors the appetite for all things crypto: Bitcoin has risen almost eightfold in the past year, striking a record $61,742 in mid-March. The chance for Coinbase now is to capture the increasing variety of institutional and business clients, such as MicroStrategy Inc. and Tesla Inc., that are buying Bitcoin for the long run.”That’s going to be the Holy Grail for them if they can hold on to that company, due to the fact that those folks are seen more as holders than traders,” said Julie Chariell, a senior expert at Bloomberg Intelligence for fintech and payments firms.Providing extra items such as custody services might mean Coinbase could look more like a bank than an exchange in a few years, according to Chariell. “It’s a broader play, getting to be a one-stop shop for whatever you wish to do with your crypto properties,” she said.Coinbase spokesman Elliott Suthers declined to make any company officials readily available for comment, pointing out the “quiet duration” Coinbase is required to keep before its Nasdaq listing.It’s been a long and at some point difficult road to the prepared launching, and there are still risks to its business model.Coinbase revealed in filings for the share sale that it had actually received a subpoena from the Securities and Exchange Commission. According to a person familiar with the matter, the questions was associated with XRP, the digital token created by Ripple that’s the subject of an SEC suit alleging it was offered as an unregistered security.That same month, the SEC announced it was suing Ripple and two of its founders for violating U.S. securities laws. Coinbase was forced to de-list XRP, which at the time was the 3rd most-valuable cryptocurrency in the world.It’s difficult to tell how the loss of XRP impacted Coinbase’s revenues since Bitcoin at the very same time was escalating to records, stated Bloomberg Intelligence’s Chariell. A higher danger would be the requirement to de-list many of the alt coins Coinbase now provides if the SEC case identifies XRP is a security.”It is a risk, absolutely, however I just do not believe it’s a huge danger at this point,” she said.Despite the XRP scrutiny, Coinbase’s growth strategies seem to be working. In 2020, coins on the exchange other than Bitcoin and Ether represented the largest profits share, at 44%, according to its SEC filing.”It made economic sense for Coinbase to list high-demand tokens due to greater competition from other exchanges,” Messari’s Christanto said.Bitcoin LinkAnother risk: Coinbase’s fortunes tend to represent Bitcoin’s unstable history. The exchange just turned a profit in 2015 as institutional need for crypto properties propelled Bitcoin and other coins such as Ether to brand-new highs. The recent lean years, known as the crypto winter season, extended from 2018 to 2019, with Bitcoin hitting a low of about $3,100 in December 2018. Up until then, Coinbase was known for noting just the big hitters in the crypto world, consisting of Bitcoin, Litecoin and Ether.Coinbase’s potential customers won’t boil down to a single token like XRP. The majority of its income originates from trading costs, with retail clients charged approximately 1.4% and institutional clients about 0.05%, according to Christanto.To get it through the lean years, Coinbase has actually conducted 7 fundraising rounds for a haul of more than $500 million since September 2012, Messari research shows. That’s on top of the income from offering Bitcoin and Ether, which more than tripled last year to $134 million, according to Messari.All of that has offered a strong financial position for Coinbase to list openly. Based upon figures provided by the company, Chariell calculated that 5.5 million month-to-month users corresponds to $3 billion in 2020 income. The top 12 fintech companies to go public in the last six months have actually had price-to-sales ratios of 36 times, she said. Multiplying that by 2020 profits gets you a large number.”You’re quickly over $100 billion in market cap,” she said.For more articles like this, please visit us at bloomberg.comSubscribe now to remain ahead with the most trusted business news source. © 2021 Bloomberg L.P.