Coinbase value spikes to $86bn in debut tradingEuropost
The crypto currency Coinbase made a smashing debut and it saw its shares surge and marked value reaching as high as 86 billion dollars after touching briefly 100 billion, AP reported. Coinbase Global IPO is seen by some as an inflection point for digital currencies, as Coinbase’s fortunes are closely tied to Bitcoin, the most popular crypto currency. Bitcoin’s price topped $64,000 in mid-week trading, up from $29,000 at the start of the year, and Coinbase said recently that first-quarter revenue should total around $1.8 billion, exceeding its revenue for all of 2020.
Shares of Coinbase are listed on the Nasdaq and closed at $328.28, up 31% from the $250 reference price set by Nasdaq ahead of the first trade. That puts Coinbase’s market value at $85.78 billion.
That market value makes Coinbase one of the biggest publicly traded US companies - just 93 companies in the S&P 500 index have a higher market value. Coinbase’s value is close to the combined market value of Nasdaq Inc., which runs the Nasdaq Stock Market, and Intercontinental Exchange, which owns the New York Stock Exchange. Founded in 2012, Coinbase became popular among crypto currency fans by providing them with an easier way to exchange shares of Bitcoin and other digital currencies. Unlike many newly public companies Coinbase is profitable - the company estimates it had net income of between $730 million and $800 million in the first quarter. Coinbase said it had 56 million verified users as of 31 March, with 6.1 million making transactions monthly. Trading volume in the first quarter was $335 million. Instead of using a traditional IPO, Coinbase went public through a public listing. That means it avoided the typical agreements with big banks that would buy thousands of shares and promote them. A direct listing allows insiders and early investors to convert their stakes in the company into publicly traded stock.