Social trading and multi-asset brokerage company eToro is reportedly in talks with investment bank Goldman Sachs to conduct a $5 billion initial public offering (IPO).
According to a Dec. 28 report by Israelian news outlet Calcalist, eToro plans to complete its IPO by the second quarter of next year. The firm is also reportedly considering a merger with a special purpose acquisition company—essentially a publicly traded company created to merge with a company that wants to go public without an IPO—to achieve a faster “entry into Wall Street trading.”
The news follows recent reports that major U.S.-based cryptocurrency exchange Coinbase filed documents that could lead to its IPO. This may be the best moment for cryptocurrency firms to conduct initial public offerings, given that institutional interest in the industry is at its highest level ever.
Calcalist, which does not cite any sources for its information, noted that Israel-based eToro added five million users to its platform this year, and saw its revenue double to reach $500 million. Following the growth, eToro recruited hundreds of new employees this year, reaching 1,100 employees, 700 of them in Israel. The firm also reportedly plans to hire hundreds more next year.
According to company data website Crunchbase, eToro raised $272.7 million in 11 funding rounds. The last of those rounds—the secondary market offering—saw the firm raise an additional $50 million. It closed on Dec. 8.
The company has close ties to the cryptocurrency space. As Modern Consensus reported in April last year, eToro launched its own cryptocurrency exchange—called eToroX—along with eight stablecoins.
Yoni Assia, CEO of eToro, is a major blockchain and crypto asset proponent. During a 2019 interview with Modern Consensus, he said he believes that “anything that is of financial value will eventually get tokenized, or a significant part of the world that has value tokenized.”