Coinbase cryptocurrency exchange goes public in March to the general public
The cryptocurrency exchange Coinbase Global Inc., was valued at nearly US $ 100 billion on Wednesday during a Nasdaq debut that marked another milestone in the development of bitcoin and other digital assets.
The San Francisco-based company’s stock market debut – made through a direct listing where no shares are sold until it opens – comes amid a surge in the value of cryptocurrencies.
Coinbase’s share opened at $ 381 per share, up 52.4% from the price of $ 250 per share set on Tuesday.
Founded in 2012, the company has 56 million users worldwide and approximately $ 223 billion in assets on its platform, representing 11.3% of the crypto asset market share, according to regulatory filings. .
“We are so grateful that we can bring transparency to the crypto-economy, the ecosystem that we have all built over the past 10 years,” said Alesia Haas, Chief Financial Officer of Coinbase.
“It just brings that level of recognition that it’s an industry that’s here, that’s growing, and that’s (not just) in the corners.”
Coinbase was valued at just under $ 6 billion as of September, but has risen alongside Bitcoin’s gains this year.
The world’s largest and best-known cryptocurrency hit a record high of over $ 63,000 on Tuesday and more than doubled in value this year as banks and businesses turned to the emerging asset.
BEHOLDEN TO BITCOIN?
The company’s most recent financial results highlight how revenues have grown alongside the rally in volumes and prices of bitcoin exchanges.
In the first quarter of the year, as the price of bitcoin more than doubled, Coinbase estimated revenues of over $ 1.8 billion and net income of between $ 730 million and $ 800 million. dollars, compared to sales of $ 1.3 billion for 2020 as a whole.
“The correlation with bitcoin will be very high after the stock stabilizes after listing,” said Larry Cermak, research director at crypto website The Block.
“When the price of bitcoin goes down, it’s inevitable that Coinbase’s revenue and, by nature, the share price will also go down.”
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Regulatory risks also threaten, others say, as Coinbase increases the number of digital assets that users can trade on its platform.
Coinbase suspended trading in leading digital currency XRP last year after U.S. regulators accused associated blockchain company Ripple of an unregistered securities offering of $ 1.3 billion. Ripple has denied the charges.