Celsius Network valued at $3.1B following review (Updated 3/10/2021)

Update 3.10.2021 Alpha Sigma Capital holds Celsius in its portfolio alongside more than a dozen other blockchain-focused projects.

Crypto lending platform Celsius Network is worth three times its current market capitalization, underscoring the project's massive growth potential over the next five years, according to new research from Alpha Sigma Capital.

Using 2020 financials obtained from Celsius, Alpha Sigma Capital has determined that the crypto company has an implied value of $3.13 billion, which is approximately three times greater than its current market capitalization of $1.1 billion.

It appears that “Celsius is currently undervalued," Alpha Sigma Capital said in its analysis, referring to the $126.14 million in revenue the company generated last year. Based on current year-to-date growth, Celsius appears to have significant upside ahead. 

Alpha Sigma Capital explained:

“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.”

By the end of 2025, Celsius’ AUM is expected to reach nearly $30 billion. One potential growth driver for Celsius in the long term is adding exchange capability, which would significantly enhance the platform's usability. CEO Alex Mashinsky has also hinted at the possibility of incorporating self-insurance options that would allow users to insure their deposited funds.

2020 was a watershed year for Celsius. Since January 2020, the lending platform has registered a nearly 300% increase in users. By February 2021, Celsius had paid out $250 million in crypto rewards to depositors, up from $80 million in November 2020.

Although decentralized finance, or DeFi, has hogged the crypto spotlight since the summer of 2020, Celsius’ native token, CEL, has been one of the market’s best performers. Unlike DeFi, Celsius offers a centralized platform for users to deposit their cryptocurrencies to receive interest payments. Celsius currently offers over 40 interest-bearing assets, with yields as high as 18.5%.