Alpha Sigma Capital values Celsius Network at over $3BN

Celsius Network is currently one of the fastest-growing firms in the cryptocurrency sector

Celsius, the industry-leading crypto rewards-earning platform, is seemingly  setting new milestones every week. The network presently boasts a customer base of over 464,000 users, having seen an over 300% user growth last year alone. Last month, the crypto platform revealed it had distributed crypto rewards worth over $250 million. This is a remarkable increase from the $80 million figure reported four months ago.

Another report from last week detailed that the network had seen exponential job creation last year. The lending platform announced a 350% employee growth in one year of the COVID-19 pandemic from March 2020 to March 2021.

Beyond the addition of new roles and workforce expansion, the company is also making news in its value. An independent review by the digital asset investment firm Alpha Sigma Capital reported that the company is worth $3.13 billion. Further, the crypto platform is set to see a 25% yearly surge in its assets under management over the next four years.

Celsius’s implied value was calculated based on its 2020 financials. The $3.13 billion implied value figure is almost thrice its market cap that is currently headed towards $1.2 billion. The review asserted that the crypto platform was not valued properly in reference to the revenue of $126.14 million the company generated last year.

Alpha Sigma wrote, “Based on 2020 financials received from the Celsius management team, we refined and updated our valuation model. Looking at the numbers […], it appears that Celsius is currently undervalued…”

The US-based investment firm went on to highlight the expected figures based on its updated projections

“Our projections are conservative for 2021, and we see AUM growth tapering off with another $3 billion in AUM growth by year end. From there, we project that the company will be able to grow AUM 25% year-over-year through 2025.”

The platform’s assets under management (AUM) is projected to close in on $30 billion in the next four years based on these figures. Extending the exchange capability will likely help steer Celsius towards this milestone. Celsius’s chief executive has also insinuated that self-insurance is an alternative on the table. This approach will let users insure the funds they inject into the crypto lending platform.