On the first day of listing, Coinbase had a closing market value of approximately US$85.7 billion, making it one of the largest technology IPOs in history.
Original title: “The “Milestone Moment” of Digital Currency! Coinbase’s closing market value on the first day of listing is close to the New York Stock Exchange’s parent company | IPO information”
Written by: Du Yu, Lin Jingyang Source: Wall Street
On Wednesday, April 14th, at 1:26 pm East US, riding on the east wind of Bitcoin and other cryptocurrencies soaring, Coinbase, the largest digital currency exchange in the United States, successfully listed on the Nasdaq.
According to the analysis, this created the first case of listing on a cryptocurrency exchange and set another milestone in the era of digital currency. It is also of great significance to the Nasdaq exchange itself, because Coinbase is the first stock on the exchange to adopt a “direct listing” IPO.
Although as the stock opened up and down, the market value at the close fell below analysts’ expectations of 100 billion U.S. dollars, but Coinbase is still one of the largest technology IPOs in history, in line with Facebook’s 2012 IPO and Airbnb’s last year’s IPO. The valuation is comparable.
Calculated at the closing price, Coinbase co-founder and CEO Armstrong (Brian Armstrong) shares are worth 13 billion U.S. dollars. The company’s other major investors include two venture capital giants Andreessen Horowitz (Andreessen Horowitz) and Union Square Ventures (Union Square Ventures), and another co-founder Fred Ehrsam.
Coinbase rose by more than 70%, and its market value broke through 100 billion U.S. dollars, and closed below the opening price
The opening price of Coinbase on the first day of listing was reported at US$381, an increase of 52.4% from the reference price of US$250 given by Nasdaq. The fully diluted total market value was US$99.6 billion, which was close to the US$100 billion mark.
Within half an hour, the stock hit a daily high of US$429.54, expanding to nearly 72%, with a total market value of US$112 billion at its peak.
But then the stock price began to pull back, hitting a minimum of 310 US dollars, falling below the opening price, and finally closing at 328.28 US dollars, closing up 31.31%, and continuing to rise by more than 1% after the market.
After Coinbase began trading, Bitcoin fell by more than 2.5% in the short-term, returning to nearly US$3,000 from its daily high. It once broke US$62,000, and broke through a new high of US$64,000 overnight.
US blockchain stocks generally fell. Marathon Digital fell nearly 16%, Riot Blockchain fell more than 15%, Jianan Zhizhi and Ninth City both fell more than 7%, and Bit Digital fell nearly 7%.
Brokerage Wedbush analyst Dan Ives pointed out that the listing of Coinbase may become a “watershed” in the cryptocurrency industry. The market will pay close attention to changes in its stock price to assess investors’ appetite for the cryptocurrency behind it.
Coinbase ranks among the 85 companies with the highest market capitalization in the United States, or accelerates the entry of digital currencies into the mainstream
After the US stock market on Tuesday, Nasdaq gave Coinbase, which adopted a “direct listing” IPO, a reference price of US$250 per share, bringing the company’s total valuation to US$65.3 billion, with the stock code as COIN. But the price is much lower than the previous transaction price of $350 per share on the private market, which will make Coinbase value up to $90 billion.
Coinbase said on Tuesday that there are 130.7 million shares outstanding in Class A shares. After full dilution, the company has 261.3 million outstanding shares. The “total market value” mentioned above is calculated based on the number of fully diluted outstanding shares.
On the eve of public trading, the financial media CNBC said that the opening price of Coinbase, which was hinted earlier on Wednesday, was about $360. Based on the number of fully diluted stocks, the opening price will make its market value more than 94 billion U.S. dollars. Excluding options and restricted stock units (RSU) allocated to employees, its market value is approximately $67 billion.
Wall Street has mentioned that Coinbase may be valued as high as about 100 billion US dollars after listing. If it is really valued at hundreds of billions of dollars, it will become one of the 85 largest companies in the United States by market capitalization, and the valuation will exceed the level of Uber and Facebook when they went public.
Just one day before Coinbase’s listing, the prices of the world’s top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), both hit record highs. BTC exceeded US$63,000 for the first time in history, and ETH surpassed US$2,300 for the first time. Investors are optimistic about the prospects for the digital currency to accelerate into the mainstream after the listing of Coinbase.
Coinbase turned losses into profits last year, and its revenue in the first quarter of this year was 9.4 times that of the same period last year
In 2012, the current CEO of Coinbase Brian Armstrong and others jointly created this exchange to provide the public with cryptocurrency trading services. Three years later, Coinbase became the first licensed bitcoin exchange in the United States.
Until today, Coinbase has developed a number of businesses such as custody, investment, and subscription, but its core business is still to match online transactions of encrypted assets. It provides transaction services for more than 45 types of encrypted assets, and the related fees charged account for the proportion of revenue. 86% of it.
The prospectus shows that almost all of Coinbase’s revenue comes from BTC and ETH transactions. In the past year, the prices of these two cryptocurrencies have risen by more than 800% and 1300%, respectively, driving Coinbase’s revenue, profits, and users during the same period. At present, 90% of Coinbase’s revenue comes from retail transactions, and most of the orders come from the United States.
In 2020, Coinbase’s total operating income was US$1.28 billion, almost 2.4 times that of 2019; its net profit was US$322 million, sweeping away the loss of US$30 million in 2019; 43 million certified users and 2.8 million monthly trading users.
The company estimates that the total revenue in the first quarter of this year was approximately US$1.8 billion, which was 9.4 times that of the same period last year; the net profit for the quarter was up to approximately US$800 million, which was 25 times that of the same period last year; the current quarter had 56 million certified users and 6.1 million monthly trading users. , Are far exceeding the level of last year.
Alex Mashinsky, head of Celsium Network, a crypto lending and trading platform, said: “The success of Coinbase’s listing is the industry-wide touchstone and a star that guides the industry’s future.”
Analysis: This is not for the faint-hearted, skeptics claim that valuation follows the digital currency giant shock
On Tuesday, Lisa Ellis of MoffettNathanson, an independent research institution, became the first Wall Street analyst to cover Coinbase , giving a “buy” rating and a target price of $600, which is equivalent to a market value of $123 billion. Coinbase’s revenue this year is expected to reach 4.6 billion US dollars, an increase of 260% from last year, and the expected profit is higher than that of any traditional industry exchange.
She said that even though the cryptocurrency cycle is expected to reach its peak this year, Coinbase will be the leader of the cryptocurrency ecosystem. However, she also admitted that because the market itself is not broad enough, the risks are high:
These stocks are “not for the faint-hearted” and are not suitable for more risk-averse investors.
Most doubters believe that Coinbase’s valuation is inflated and the prospects are not optimistic. In their eyes, Coinbase is just a ride on the new highs of the cryptocurrency market. The company’s overall revenue is bound to be closely related to the rise and fall of Bitcoin and Ethereum. The excessive investment in the cryptocurrency market will compress the currency instead. Room for further price increases
Investment research company New Constructs said that the overall valuation of cryptocurrency platforms is too high. As the market matures and more competitors join, Coinbase’s high profits will inevitably be eaten away. The ridiculous valuation of $100 billion will only make them Unable to realize the expected profit. The agency’s valuation was only US$18.9 billion, which was 81% lower than the expected valuation of US$100 billion.
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