Operating in Miami, USA, Securitize generated $19.5 million in revenue in the first quarter of 2024, an increase of 39 percent on an annual basis. The company recorded its highest revenue among quarters to date in this period.
Tokenization and asset services came to the fore
The company’s revenue from asset services increased by 201 percent compared to the same period last year, reaching 8.3 million dollars. The growth of Securitize Fund Services is noteworthy in this rise. The platform in question announced that it served 650 active funds as of the end of March. Tokenization revenues were recorded as 11.1 million dollars; This figure was $11 million in the same quarter a year ago.
At the end of the quarter, the total tokenized assets managed reached $3.4 billion, while the value of the company’s total assets under management was recorded as $24.9 billion. The total transaction volume reached 1.9 billion dollars.
Profitability pressure continues
Despite strong growth in revenue, Securitize finished the quarter with a loss again due to increases in operating expenses and IPO preparations. While net loss increased to $7.9 million (88 cents per share), adjusted operating profit, EBITDA, decreased to $800 thousand. In the same period the previous year, this figure was 4.1 million dollars.
Francisco Flores, the company’s Chief Financial Officer, stated that they continue to invest in personnel and infrastructure within the scope of their growth strategy, but they proceed with spending discipline.
SPAC merger and public offering process
Securitize has taken an important step towards becoming a public company. The company reached a merger agreement with Nasdaq-listed Cantor Equity Partners II (CEPT). With this merger, Securitize aims to become one of the few tokenization-focused companies operating in the public markets. CEPT shares gained 5 percent on Wednesday.
Mini dictionary: What is SPAC (Special Purpose Acquisition Company)? A SPAC is a type of company created for a specific purpose and is usually publicly traded. The purpose of the activity is to merge with another company and indirectly make that company public. Recently, it stands out as a frequently used method, especially in the technology and finance sectors.
The report published by the company stated, “While our human resources and infrastructure investments increased within the scope of supporting long-term growth and preparation for the public offering process, we continued our disciplined approach in expense management.”
If the merger is completed, Securitize aims to strengthen its leading position, especially in the tokenization of real-world assets and securities.
