That said, she acknowledged that 90% of Coinbase’s revenues are currently derived directly from retail trading, with most if that in the U.S. “I’m super super bullish on Coinbase … because you get the sense that they are a market leader in the space and crypto-agnostic,” she said. MoffettNathanson analyst Lisa Ellis explained to MarketWatch why the offering is, as she described it, “not for the faint of heart,” even as she initiated coverage of the exchange at a buy with a price target of $600, before the stock has seen its first trade on the Nasdaq. Trainer said that, based on his calculation, Coinbase’s valuation should be closer to $18.9 billion - an 81% decrease from the $100 billion expected valuation. “Coinbase’s expected valuation of $100 billion implies that its revenue will be 1.5 the combined 2020 revenues of two of the most established exchanges in the marketplace,” namely, NYSE parent ICE and Nasdaq. “Even though Coinbase’s revenue surged over the past 12 months, the company has little to no chance of meeting the future profit expectations that are baked into its ridiculously high expected valuation of $100 billion,” he said. exchange operators, including ICE, Nasdaq, CME Groupĭavid Trainer, CEO of the investment research firm New Constructs, said the crypto platform’s value is ridiculously high. Some bulls are projecting a valuation at $100 billion or better, which would make it bigger than a number of U.S. On Wednesday, Coinbase stock was indicated to open around $350, or 40% above its reference price. Nasdaq assigned Coinbase a reference price of $250 a share on Tuesday evening, which values it at over $65 billion. Where will it list?Ĭoinbase is set to go public on the Nasdaq under the ticker symbol “COIN” as a direct listing, meaning it isn’t raising new money, as a company would in a traditional IPO.Ĭoinbase is the Nasdaq’s first major direct listing, with SpotifyĪnd most recently Palantir all opting to directly list at the NYSE. 1.41% direct listing in September saw the first trade of its debut session after 1:30 p.m. The precise timing of the list isn’t clear, but Palantir Technologies Inc.’s The Coinbase listing is set to hit the Nasdaq on Wednesday. Fred Ehrsam, a Coinbase director, also played a role in the company’s creation.Īccording to Forbes, Armstrong’s net worth is currently $6.5 billion, based on his ownership in the company, and his wealth is likely to increase if the direct listing goes off successfully. The Silicon Valley crypto exchange was co-founded in 2012 by Brian Armstrong, 38, who runs the platform as chief executive.
The following is what you need to know about the Coinbase lising. In a direct listing, a company floats its shares on a stock exchange but without hiring banks to underwrite the transaction as in an IPO. The parent company of the New York Stock Exchange. Where Coinbase will directly list, and Intercontinental Exchange Some caution that the implied valuation for Coinbase as a crypto exchange has gotten too lofty, compared with traditional stock exchanges like Nasdaq Inc. “Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of bitcoin and crypto for the coming years in our opinion,” he wrote in a research note Tuesday. Wedbush analyst Dan Ives said the listing is a reflection of cryptocurrencies’ having arrived at the mainstream. “Coinbase’s direct listing is a watershed moment for the crypto industry.” Leeor Shimron, an analyst at FundStrat Global Advisors, described the Coinbase listing as seminal. Market Extra: This new ETF gets you access to the backbone of the crypto worldĬoinbase, whose users primarily deal in bitcoin and ethereum, reported last week that its revenue soared 847% in the first quarter to $1.8 billion, and that it now has 56 million verified users.
There are few ways to secure direct ownership of crypto currencies, outside of buying them directly, a service that Coinbase provides for a fee, and which investors appear willing to pay for.
#Coinbase app update free#
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