eToro Targets $4 Billion Valuation in Upcoming Nasdaq IPO

TLDR eToro targets $4 billion valuation in upcoming Nasdaq IPO under ticker “ETOR” Company and shareholders aim to raise $500 million by offering 10 million shares priced between $46-$50 BlackRock indicated interest in purchasing up to $100 million worth of shares Crypto trading revenue increased from $3.4 billion in 2023 to $12.1 billion in 2024 IPO plans were previously delayed due to market volatility following Trump’s tariff announcements Israel-based trading platform eToro is targeting a valuation of up to $4 billion in its upcoming US initial public offering. The company, which allows users to invest in stocks and select cryptocurrencies, is moving forward with its long-awaited New York listing after previous delays. eToro and existing stockholders plan to raise up to $500 million by offering 10 million shares priced between $46 and $50 each. The company will list on the Nasdaq Global Select Market under the ticker symbol “ETOR.” The IPO comes at a time when stock markets have regained some stability after recent volatility. eToro had previously delayed investor presentations last month due to market conditions following President Trump’s tariff announcements on April 2, which caused global market turbulence. This isn’t eToro’s first attempt to go public. The company had earlier looked to enter public markets through a merger with a special purpose acquisition company (SPAC) at a $10.4 billion valuation, but those plans fell apart in 2022. Crypto Growth and Regulatory Challenges eToro reported that its revenue from cryptocurrency trading reached $12.1 billion in 2024, up from $3.4 billion in 2023. However, the company expects crypto to account for 37% of its commission from trading activity in the first quarter of 2025, down from 43% in the year-ago quarter. The platform has faced regulatory challenges in the crypto space. In September, eToro agreed to limit its US cryptocurrency offerings to bitcoin, bitcoin cash and ether as part of a settlement with the Securities and Exchange Commission on charges it operated as an unregistered broker and unregistered clearing agency. In its SEC filing, eToro highlighted several crypto-related risks to its business. These include potential negative perceptions of cryptocurrencies it lists, US state-level crypto regulations that “may place strain on our resources,” and costs associated with complying with the European Union’s Markets in Crypto-Assets (MiCA) laws. Founded in 2007, eToro raised $250 million in a funding round in 2023 at a valuation of $3.5 billion. The company is set to compete with Robinhood Markets Inc., which has seen its shares climb by nearly 30% so far this year despite a dip in crypto trading during the first quarter. eToro filed an updated IPO prospectus seeking to raise $500M at a $4B valuation $ETOR . >Mentions crypto 630 times >Crypto trading is 38% of transaction revenue >$ETOR held $113M in digital assets (likely BTC) as of year-end 2024 >Net income of $192M, so ~21x PE. pic.twitter.com/o0vt83pqYz — matthew sigel, recovering CFA (@matthew_sigel) May 5, 2025 Asset manager BlackRock has indicated interest in purchasing up to $100 million worth of shares in the offering. eToro has also set aside 500,000 shares to sell through a directed share program, typically targeted at employees. The IPO is being led by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup. eToro’s offering will serve as a test of investor appetite for first-time share sales following recent market volatility. Other crypto companies are also preparing for public offerings. Stablecoin issuer Circle filed on April 1 but paused its plans amid market uncertainty, while crypto exchange Kraken is reportedly considering a public offering for early next year. As eToro moves forward with its IPO plans, investors will be watching closely to see if the company can successfully tell its growth story in what remains a highly competitive market. Source: https://blockonomi.com/etoro-targets-4-billion-valuation-in-upcoming-nasdaq-ipo/