eToro's Journey to Going Public: Growth and Innovation

The Growth Surge: eToro’s Impressive Revenue Jump

In 2020, eToro experienced a jaw-dropping growth of over 147% in year-over-year revenue. This surge can be attributed to the thriving mainstream and crypto bull markets. As CEO Yoni Assia put it, they found themselves in the midst of a “perfect storm” of interest, showcasing a history-making dialogue on how social media intersects with investment platforms.

The Crypto Market Boom

Bitcoin and other cryptocurrencies didn’t just revive; they exploded in 2020! After a downturn in March, just as the world was grappling with COVID-19, Bitcoin staged a remarkable comeback, smashing its previous record high from 2017 in December. If 2020 was a blockbuster for Bitcoin, 2021 is shaping up to be a continuation of cinematic thrills for crypto enthusiasts.

Taking the Plunge: eToro’s Public Offering Plans

On March 16, eToro publicly announced its grand plans to go public via a SPAC (Special Purpose Acquisition Company), which is basically a more casual way of merging with an already-existing public company. As Assia expressed, when your business outgrows expectations, it’s time to get ready for the big leagues!

What Does Going Public Mean for eToro?

Assia reassured that the day-to-day operations would remain mostly unchanged for their customers, but going public is no small potatoes. With an impressive balance sheet boosted by a $650 million private investment in public equity (PIPE) and a $250 million SPAC, eToro is poised for aggressive expansion. They aim to spread their tentacles into various markets, including a keen interest in the U.S.

SPACs: A New Route to Going Public

SPACs may sound like a foreign concept, but they open the door for retail investors to get involved early. Once a SPAC announces its business combination agreement, stocks can be traded immediately – a considerable advantage over traditional IPOs. Assia humorously compared the excitement of settling on a new ticker symbol to the anticipation of expecting a baby – lots of laughter and curiosity!

The Road Ahead for eToro

As eToro gears up to complete its merger, it anticipates exciting times ahead. With growth goals in mind and significant financial backing, Assia envisions a future where eToro not only thrives but also leads the charge into new territories of investment.