eToro Prices IPO at $52, Valuing Company at $42 Billion, Cryptocurrency Revenue Doubles

eToro, a prominent stock and cryptocurrency trading platform, has successfully priced its initial public offering (IPO) at $52 per share, surpassing its initial price range of $46 to $50. The company, headquartered in Israel, aims to raise approximately $3.1 billion through the sale of nearly 600 million shares, valuing the company at around $42 billion. This move comes as eToro continues to expand its presence in the cryptocurrency sector, with significant growth in digital asset-related revenue, which more than doubled in 2024, exceeding $120 million. The company's net profit for the year surged to $1.924 billion, marking a nearly 13-fold increase from the previous year. Cryptocurrency now accounts for 25% of eToro's net trading contributions, up from 10% the year before.

The IPO, which includes the sale of 500 million shares by the company and an additional 500 million shares by existing investors and executives, is being underwritten by major financial institutions. The company's stock is set to trade on the Nasdaq Global Select Market under the ticker symbol ETOR. This IPO marks a significant milestone for eToro, which had previously attempted to go public through a merger with a special purpose acquisition company (SPAC) in 2022. That deal, which would have valued the company at over $100 billion, was ultimately abandoned due to market volatility.

eToro's business model, similar to that of other trading platforms, generates revenue through trading-related fees, including the bid-ask spread, as well as non-trading activities such as withdrawals and currency exchanges. The company's strategic focus on cryptocurrency has positioned it well in a rapidly evolving market, where digital assets are becoming increasingly mainstream. The successful IPO of eToro is expected to serve as a barometer for market sentiment towards public offerings, particularly in the tech and financial sectors. Other companies have also recently initiated IPO processes, indicating a renewed interest in public markets despite ongoing economic uncertainties.