Today, we announced that we will not complete our SPAC transaction. In the current market environment, we believe that it is in the best interests of eToro to terminate the merger agreement and continue, for now, to operate as a private company. I would like to thank Betsy Cohen and the entire FinTech V team for their hard work, diligence and support throughout this process.
Over the past 5 years, eToro has made over $400M in profit and in 2021 raised $250M in a funding round. We have a strong balance sheet which enables us to continue to invest in our product offering and future growth. During the bull market, we saw a rise in the valuations of fintech companies based on positive forward-looking perspectives and the assumption of continued growth. In today’s more challenging conditions it seems that markets are assuming the worst which creates an unfriendly market environment for public companies.
2021 was an ideal operating environment for our business, with strong bull markets in both stocks and crypto, and we have seen 2 years of 100% growth in revenues and 1000% growth in customer assets. So far, 2022 has started with a thud with the S&P 500 off to its worst start in more than 50 years and most cryptoassets down 50% or more pushing us into a bear market for both stocks and crypto.
Famed investor and Vice Chairman of Berkshire Hathaway, Charlie Munger has said, “If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a 50% decline without fussing too much about it.”
We believe this bear market presents an opportunity for us to double down on educating our users, helping you to manage risk through these challenging times. We all learn through adversity and I believe that many of you will emerge from this bear market as more successful investors.
This is not our first bear market or our first crypto winter. Over the past 15 years, we have weathered many market cycles, emerging stronger from the experience. Our global footprint, diverse product offering and social capabilities mean that we are well positioned for future growth.
We appreciate your continued support and look forward to sharing eToro’s bright future together.
Yoni
Yoni Assia is eToro Co-Founder and CEO