eToro's Nasdaq Listing Raises $310M, Valued at $4.2B

eToro, a prominent cryptocurrency and stock trading platform, has successfully listed on the Nasdaq exchange, marking a significant milestone in the financial markets. The company offered 6 million shares at $52 each, raising approximately $310 million and achieving a valuation of $4.2 billion. This listing positions eToro as the first U.S.-based crypto company to go public in 2025, underscoring its leadership in the industry.

The platform's strong financial performance has been a key driver for its successful IPO. eToro's net income surged from $15.3 million in 2023 to $192.4 million in 2024, fueled by a growing interest in cryptocurrency and an influx of users from around the world. The company's revenue from crypto assets grew by over 200% in 2024, reaching above $12 million. This growth highlights eToro's ability to capitalize on the increasing interest in cryptocurrencies among smaller investors, with crypto now accounting for 25% of its net trading revenue, up from 10% the previous year.

eToro generates income through trading fees, which include spreads on orders, as well as additional services such as currency conversions and withdrawal fees. By the end of 2024, eToro reported 3.5 million funded account holders across more than 75 countries, demonstrating its expanding global presence and popularity.

The decision to launch the IPO was influenced by improving economic conditions and a recovering market confidence. The return of Donald Trump to the presidency in January 2025, along with a drop in interest rates and inflation, has contributed to a more favorable environment for IPOs. Successful IPOs by companies like CoreWeave earlier in the year further encouraged eToro to proceed with its plans.

eToro's journey to going public has been marked by strategic patience. In 2022, the company initially planned a merger with a SPAC, which would have valued the company over $10 billion. However, the plan was abandoned due to market downturns. Despite this setback, eToro remained prepared for a public listing and successfully navigated the challenges to achieve its Nasdaq debut.

Yoni Assia, the CEO and co-founder of eToro, emphasized that the company waited for the optimal time to go public. Founded in 2007, eToro aims to revolutionize how ordinary people participate in financial markets. The Nasdaq listing reflects a shift in investor perception of crypto trading platforms, signaling a new era of acceptance and growth in the industry.

The first day of trading for eToro shares exceeded all expectations, indicating strong investor demand and confidence in the company's future growth prospects. This successful listing is particularly notable as it is the first for a U.S.-based crypto company in recent months, setting a precedent for others in the industry. Despite uncertainties related to tariffs and deals, eToro's decision to proceed with its IPO in May 2025 has positioned it as a leader in the crypto trading space.