{"id":212412,"date":"2021-03-27T09:14:00","date_gmt":"2021-03-27T06:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/etoro-going-public-ceo-yoni-assia-reveals-key-details-behind-the-move\/"},"modified":"2021-03-27T09:14:00","modified_gmt":"2021-03-27T06:14:00","slug":"etoro-going-public-ceo-yoni-assia-reveals-key-details-behind-the-move","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/etoro-going-public-ceo-yoni-assia-reveals-key-details-behind-the-move\/","title":{"rendered":"# eToro going public: CEO Yoni Assia reveals key details behind the move"},"content":{"rendered":"

“# eToro going public: CEO Yoni Assia reveals key details behind the move <\/strong>”
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Over the course of 2020, eToro sized up significantly, as Assia explained: \u201cWe\u2019ve grown more than 147% year-over-year revenues,\u201d he noted. This year rolled in with mainstream and crypto bull markets in full swing, in tandem with \u201cthe biggest discussion we\u2019ve seen in human history around the intersection of social media<\/a> and investment platforms\u201d \u2014 all bubbling together to form what Assia labeled as \u201ca perfect storm.\u201d He added:<\/p>\n

\u201cWe\u2019re seeing an immense interest all around the world from people who want to participate in the global markets, which was our original vision from 2017 when we started our business of opening the global markets for everyone to trade and invest in a simple and transparent way.\u201d <\/p><\/blockquote>\n

Bitcoin (BTC), as well as the rest of the crypto market, posted a standout year in 2020 after quickly recovering from a significant price decline around the same time as rising COVID-19 concerns in March 2020. Mainstream markets also rallied in 2020, but Bitcoin picked up steam late in the year, breaking its 2017 record high in December before continuing significantly higher. So far, 2021 has seen a continuation of the mainstream and crypto bull markets. <\/p>\n

On March 16, eToro announced plans for taking its operation public on the Nasdaq through a special-purpose acquisition company, or SPAC. Essentially, this is a type of merger in which a private company combines with a specific, already-public company (a SPAC company), turning public in a less direct manner than an initial public offering. <\/p>\n

\u201cWhen your business grows faster than your expectations, it is always the right thing to do to make sure that you\u2019re fully prepared to take the next stage of growth as a bigger company, as a public markets company,\u201d Assia said. \u201cWe\u2019re very excited about this next step of growth.\u201d<\/p>\n

Crypto exchange Coinbase plans on taking its business public through a direct listing on the Nasdaq stock exchange in April 2021. Alternatively, Diginex, a digital asset-centered entity, went public on the Nasdaq in October 2020 via a SPAC. <\/p>\n

EToro has publicized its intent to buy and merge with a SPAC called Fintech V, Assia noted. \u201cWe will merge with that company, actually buying that company, and become the listed eToro,\u201d he said. Formally known as Fintech Acquisition Corp V, the SPAC company currently trades on the Nasdaq under the ticker FTCV. <\/p>\n

\u201cWhen SPACs announce business combination agreements signed, the SPACs are already trading, so retail investors have the opportunity to invest in SPACs post-announcement under the SPAC ticker,\u201d Assia said.<\/p>\n

Essentially, this route of going public gives interested parties the chance to indirectly invest in a private company right away after it announces its intent to go public, even though it is not technically officially listed as a stock yet, based on Assia\u2019s explanation. The investor would buy the involved SPAC\u2019s stock, which would eventually become the stock of the private company. General<\/a>ly speaking, if a company went public through an IPO, investors would have to wait for the private company\u2019s stock to list and then buy its stock when it lists.<\/p>\n

Related:\u00a0Catalytic event or unbridled optimism? Coinbase app<\/a>roaches public listing<\/em><\/strong><\/p>\n

\u201cDuring the next couple of months, as we go through the process of completing the merger agreement, we will basically become the listed company on Nasdaq,\u201d Assia explained. Although Assia said his company did not yet have a new ticker name finalized at the time of the interview, eToro will not keep FTCV as its ticker. \u201cWe haven\u2019t decided on it frankly,\u201d he said. \u201cWe can\u2019t share what we haven\u2019t decided on it yet, like when you\u2019re pregnant with a kid,\u201d he explained with a laugh.<\/p>\n

What will going public change for eToro compared to current operations? \u201cI think for the majority of our day-to-day work will stay very much the same,\u201d Assia said, noting customers, persistent technological advancement and products as areas on which eToro will maintain its attention. He added:<\/p>\n

\u201cAs we conclude the deal, and we bring in the $650-million PIPE [private investment in public equity], as well as a $250-million SPAC into the company\u2019s balance sheet at most, we\u2019ll have a very strong balance sheet to consider potential acquisitions, a more aggressive geographical expansion \u2014 whether it\u2019s expanding aggressively in the U.S., or in other markets.\u201d<\/p><\/blockquote>\n

He concluded that going public while having a balance sheet of over $1 billion \u201cwill enable us to be even more aggressive as we think of the growth of eToro.\u201d<\/p>\n

In recent months, talk of crypto companies going public has made a number of headlines. Crypto and financial asset trading platform eToro is one of the latest crypto-involved companies looking to go public. The outfit\u2019s CEO, Yoni Assia, recently explained eToro\u2019s rationale behind the move in an interview with Cointelegraph.\u00a0<\/p>\n