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American cryptocurrency trading platform, Uphold, is exploring an initial public offering (IPO) or possible sale following significant revenue growth. CEO Simon McLoughlin confirms they are working with leading fintech investment bank FT Partners to explore strategic alternatives. The company aims to increase its revenue from $80 million in 2022 to $300 million this year. This growth strengthens the possibility of Uphold being valued at approximately $1.5 billion and trading on Nasdaq.
Exploring Strategic Options with FT Partners
McLoughlin reveals that FT Partners is focusing on determining the optimal path to scale the company’s operations, holding discussions with banks, brokers, and payment giants. The primary option under consideration is an IPO in the U.S., though considerable acquisition interest also plays a crucial role in the process.
The CEO notes that the interest from major financial institutions is due to Uphold’s technological infrastructure and rapidly expanding customer base. However, he refrains from commenting on the estimated $1.5 billion valuation, emphasizing that the review process is still at an early stage.
Income Surge Encourages Bold Moves
Uphold’s potential IPO is directly linked to the increase in revenue from $80 million to $300 million over two years. This strong growth spurs the search for new capital, making their financial statements attractive for an IPO process.
Timing is notable, as the recent IPO of peer-to-peer payment company Circle saw its share price soar from $31 to $115, marking a 300% increase. This success has fueled IPO momentum among crypto-focused fintech companies, giving Uphold’s management courage to proceed.
Uphold’s Distinctive XRP-Centric Products and Collaborations
Uphold aims to enhance user loyalty through its XRP-rewarded debit card and yield opportunities offered via Flare Network in the U.S. This product diversification strengthens the platform’s revenue base.
Moreover, a partnership with a Germany-based bank has expanded the company’s reach in the European market. McLoughlin remarks that a Nasdaq listing will facilitate new company acquisitions via cash and stock swaps, creating a competitive advantage in the consolidating cryptocurrency market.
