Coinbase goes public for $ 250 a share
Today, Coinbase, the largest cryptocurrency exchange in the United States and the second-largest in the world after Binance, is entering the stock market. It is one of the most anticipated subscriptions of the beginning of 2021, partly due to the huge increase in interest in cryptocurrencies. However, this is not a traditional initial public offering (IPO), but a so-called direct listing. This allows private shareholders to easily start trading their shares on a public stock exchange. Coinbase will thus avoid the higher fees that investment banks would have to pay for their access to the stock exchange.
Coinbase also does not necessarily need to obtain additional funding through a traditional IPO, as it can generate immense amounts of cash. In the first quarter of this year, the company expects sales of $ 1.8 billion, which is nine times more than last year. Coinbase is a very interesting company and is exceptional in several aspects. It is a bank of banks. It manages crypto assets for large financial institutions and companies such as Tesla and Microstrategy. This means that it has a solid and deep foundation of people who have been “parking” their crypto here for a very long time.
Crypt holders are very happy with Coinbase. They can provide very high-quality data and the reference price of USD 250 / share can easily double in the coming weeks.
Coinbase is now valued at $ 47 billion, but trading in private markets suggests that the valuation may be around $ 100 billion. The company has tremendous cash flow, and with many fintech companies being valued at up to 30 times of their revenue, Coinbase, which had last year the revenue of $ 3 billion, could be easily valued at up to $ 900 billion.