Goldman Sachs and Nasdaq have decided that Coinbase (COIN) shares will start trading at $ 250 per share.
That’s a valuation of $ 66.5 billion, assuming an estimated 266.2 million shares outstanding.
Reference prices are calculated using publicly available financial information along with market sentiment and are often a conservative estimate. This is 27% lower than what Coinbase last traded on the private secondary market, at $ 343.58 per share.
Coinbase is set to be the first major crypto business to go public in the United States, and if it reaches a market cap of $ 100 billion, Coinbase will instantly become one of 85 valuable companies. most of the country. The company’s value has skyrocketed over the past year along with bitcoin and ethereum, two major currencies traded on the exchange.
Coinbase has opted for a direct public listing rather than pursuing a traditional IPO. That means that instead of raising cash by selling new shares to a group of institutional investors, Coinbase is allowing parties to hold existing stock, including investors and corporate employees. Immediately sell their shares at market price.
The reference price provided by Nasdaq reflects recent private market transactions and input from investment bankers but does not say where the stock will open. Of the five key direct listed companies that took place on the New York Stock Exchange were Spotify, Slack, Palantir, Asana and Roblox – average opening prices were about 37% higher than reference prices.
If Coinbase opened with a similar percentage increase, the price would be around $ 343, very close to the first quarter average private market price of $ 343.58.
Last week, Coinbase released its Q1 preliminary results that revenue for the period had grown nine-fold to $ 1.8 billion and a net profit of $ 800 million, up from $ 32 million a year earlier. The majority of transactions on Coinbase involve buying and selling of bitcoin and ethereum, with volume increasing by more than 800% and 1,300% over the past year, respectively.
During the full year 2020, revenue more than doubled to $ 1.28 billion, and the company turned from a loss in 2019 to a profit of $ 322.3 million.
Coinbase has outlined its plans to be the hub of the emerging “crypto economy”, in which financial transactions and online markets will largely shift to blockchain, giving investors a lot more. Different digital currencies to trade. But the company has admitted that short-term growth will be largely dictated by the price and volume of bitcoin’s transaction.