Coinbase CEO Brian Armstrong
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Cryptocurrency exchange Coinbase has reached a valuation of $ 68 billion ahead of the highly anticipated listing of the highly anticipated Nasdaq.
The latest valuation is based on the average weighted average weight loss price announced in a revised S-1 filing published Wednesday. The company traded private shares at $ 343.58 apiece for the first quarter of 2021 ending March 15, which increases the company’s valuation 13-fold.
According to PitchBook data, the company last valued at $ 8 billion in October 2018.
The revised management filing also shows that the company has over 196 million shares payable for the first quarter of 2021, resulting in the latest valuation figure. While the market value of a company’s share value is less marked, the Nasdaq will use that information to set a reference price for the company before listing it directly.
“These secondary market share sales will help provide a ballpark where they can be valued in the public market, but we put less pressure on them than, say, if The company has raised money from new investors at that point, “said Matthew Kennedy, IPO ‘s chief IPO market strategist.
Initial filing by Coinbase in February showed the company reported a profit of $ 322 million last year on net revenue that had more than doubled to $ 1.1 billion.
Listing is just an alternative to an IPO, and involves investors and employees converting their holdings into exchange-listed stocks. Founders have become more vulnerable with the IPO process in recent years, leading to an increase in direct listings and special purpose construction vehicles.
Companies like Roblox, Spotify, Slack and Palantir went public through direct listings on the New York stock exchange. Coinbase is Nasdaq’s first direct direct listing.
Exuberance around cryptocurrencies has been steadily rising over the past year. Bitcoin, in particular, has become more widely accepted among mainstream companies and investors. Earlier Wednesday, CNBC just learned that Morgan Stanley is the first major U.S. bank to offer wealth management clients access to bitcoin assets. Meanwhile, major companies including Square and Tesla have been buying more bitcoin in recent months.
In its first file, Coinbase listed potential price reductions in bitcoin as one of its risk factors. The company has more than 43 million users trading digital assets in more than 100 countries, according to the leverage.
Bitcoin traded at just over $ 56,000 per coin Tuesday, according to coin metrics. The crypto fund had never traded above $ 20,000 before December.
According to the latest hedge, Coinbase expects to issue nearly 115 million shares of Class A common stock. The company, which is registered at No. 10 on the 2018 CNBC Disruptor 50 list, trading under the COIN ticker signal.