The Israel-based crypto and stock trading platform eToro has filed for an IPO in the USA. The company shows a significant increase in revenue and profit for 2024.
eToro's Financial Performance
According to the filed documents, eToro reported $12.6 billion in total revenue and $192 million in net income for 2024. In 2023, these figures were $3.89 billion and $15.3 million, respectively. The company has not yet disclosed how much it plans to raise or what the share price will be. These details will be revealed later when eToro is ready for the public offering. The IPO is led by major financial institutions such as Goldman Sachs, Jefferies, UBS, and Citigroup.
Company History and Market Attempts
Founded in 2007, eToro operates a trading app that allows users to follow and copy popular traders. The platform has more than 38 million users across 75 countries. The company previously attempted to go public in 2021 through a $10.4 billion merger with a special purpose acquisition company, but the deal was canceled in 2022. In 2023, eToro raised $250 million in a fundraising round that valued the company at $3.5 billion.
Crypto Market and Its Impact on eToro
About 96% of eToro’s revenue in 2024 came from crypto operations. This growth followed Donald Trump's return to the White House and his pro-crypto policies, which led to a surge in crypto prices. In the US, eToro faced regulatory issues. In September 2024, eToro USA LLC agreed to pay a $1.5 million fine related to accusations of operating as an unregistered broker.
The future of eToro remains uncertain, given the changes in the crypto market and its vulnerability to volatility. Investors need to decide whether the growth in 2024 is sustainable amid evolving regulations and market conditions.
