The Coinbase exchange has made an enthusiastic debut on Wall Street the past day. The cryptocurrency exchange shares have soared as high as $429, offering it a market value of over $100 billion.
The initial public offering of Coinbase Exchange (Coinbase Global Inc.) had legitimized cryptocurrency that commenced on the dark web years before for avoiding taxation and regulation. David Sacco, the practitioner in residence at the University of New Haven Finance Department, has mentioned the point as mentioned earlier.
“A $100 billion company in the United States in 2021 is legit,” said Don Garman, founder and chief investment officer for Mirador Capital Partners in Pleasanton, Calif. “That’s a slap in the face for people who sat back and scoffed when crypto took off.”
The digital currencies at present are getting incorporated into the business plans. The corporation giants such as PayPal, Tesla and Visa had accepted payment in cryptocurrencies.
The San Francisco-based listing of Coinbase Exchange has been seen on a public stock exchange by some as digital currencies’ inflection point. This is since Coinbase Exchange’s fortunes have been closely tied to Bitcoin, the most popular crypto coin.
Bitcoin (BTC) price had outstripped $64,000 on Wednesday from $29,000 at the beginning of the year. Coinbase had recently stated that the first quarter’s revenue must total around $1.8 billion and must exceed the total revenue for 2020.
Coinbase Exchange shares are listed on Nasdaq under the ticker “COIN” and closed at $328.28. This is 31% up from the $250 Nasdaq set reference price ahead of the first trade. This places the Coinbase market value at $85.78 billion.
This market value makes the Coinbase Exchange one of the largest publicly traded U.S. companies. The crypto exchange value is pretty close to the combined market value of Nasdaq Inc., running the Intercontinental Exchange (owns the New York Stock Exchange) and Nasdaq Stock Market.
The timing of Coinbase’s IPO “is, arguably, quite fortuitous in the current environment,” said Brian Marks, senior lecturer in the Department of Economics and Business Analytics at the University of New Haven’s Pompea College of Business. “Specifically, this IPO provides mainstream market participants who received or will receive funds that could be characterized as a ‘kicker’ to participate in the cryptocurrency related trading at, possibly, a more accessible price point with stimulus funds.”
The Coinbase Exchange became much popular amongst cryptocurrency fans after being launched in 2012. It offers the crypto fans a more straightforward method to exchange the shares of Bitcoin and other virtual currencies. However, unlike most of the latest public companies, Coinbase Exchange is much profitable. The company estimated a net income between $730 million and $800 million in Q1.
Source: MSN
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