Cryptocurrency exchange Coinbase has reached an implied $68 billion valuation ahead of its highly anticipated direct listing on the Nasdaq.
I guess all my trading fees are going somewhere...
The latest valuation is based on a volume-weighted average share price Coinbase cited in a revised S-1 filing released Wednesday. The company reported private shares trading at $343.58 apiece for the first quarter of 2021 ended March 15, which increases the company’s valuation 13-fold.
The company was last valued at $8 billion in 2018, but the company has been gaining value as bitcoin has made a historic run to break $60,000 and is currently trading $58,000.
The revised regulatory filing shows that the company has more than 196 million shares outstanding for the first quarter of 2021, resulting in the latest valuation figure.
While private market value is less indicative of a company’s share worth, the Nasdaq will use that information to set a reference price for the company ahead of its direct listing.
“Those secondary market share sales help give a ballpark of where they may be valued in the public market, but we put less weight on them than, say, if the company had raised money from new investors at that level,” said Matthew Kennedy, Senior IPO Market Strategist at Renaissance Capital.
I expect this to be a highly traded listed so expect the stock to move. However, we are use to volatile markets so maybe this will be nothing. If you saw my last Coinbase listing post, the first filing in February showed the company reported a profit of $322 million last year on net revenue that more than doubled to $1.1 billion. They have become a behemoth in the industry and I'm ready to trade their stock to get back all the fees that have pilfered from me.
In other Coinbase news yesterday transfers of ADA were allowed to users account ahead of trading which will begin on or after 9AM Pacific Time (PT) Thursday March 18, if liquidity conditions are met.
I'm hoping they continue to allow more trading pairs after the launch. I could see the regulations getting tighter once they hit the Nasdaq.
