TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      This crypto winter will be long, cold and harsh

      19 May 2022

      Haven’t had Covid yet? It could be more than just luck

      19 May 2022

      Reserve Bank eyes digital rand as it readies crypto regulations

      19 May 2022

      E.tv parent eMedia leaps higher on surge in profits

      18 May 2022

      Growth evaporates at Tencent, and worse may be to come

      18 May 2022
    • World

      TikTok plans big push into gaming

      19 May 2022

      Musk says he will vote Republican, calls ESG a ‘scam’

      19 May 2022

      Crypto crash leaves El Salvador in a pickle

      19 May 2022

      Tencent leads big China tech selloff

      19 May 2022

      Russia seizes Google’s bank account, forcing bankruptcy

      18 May 2022
    • In-depth

      Elon Musk is becoming like Henry Ford – and that’s not a good thing

      17 May 2022

      Stablecoins wend wobbly way into the unknown

      17 May 2022

      The standard model of particle physics may be broken

      11 May 2022

      Meet Jared Birchall, Elon Musk’s personal ‘fixer’

      6 May 2022

      Twitter takeover was brash and fast, with Musk calling the shots

      26 April 2022
    • Podcasts

      Dean Broadley on why product design at Yoco is an evolving art

      18 May 2022

      Everything PC S01E02 – ‘AMD: Ryzen from the dead – part 2’

      17 May 2022

      Everything PC S01E01 – ‘AMD: Ryzen from the dead – part 1’

      10 May 2022

      Llew Claasen on how exchange controls are harming SA tech start-ups

      2 May 2022

      The inside scoop on OVEX’s big expansion plans

      20 April 2022
    • Opinion

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022

      Cash is still king … but not for much longer

      31 March 2022

      Icasa on the role of TV white spaces and dynamic spectrum access

      31 March 2022

      Minister Ntshavheni is at risk of tripping up

      24 March 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Cryptocurrencies»Coinbase valued at $86-billion in choppy Nasdaq debut

    Coinbase valued at $86-billion in choppy Nasdaq debut

    Cryptocurrencies By Agency Staff15 April 2021
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Coinbase Global was valued at US$86-billion at the end of its Nasdaq debut on Wednesday, in a choppy day of trading when its valuation went as high as $112-billion.

    Coinbase’s stock market debut, done through a direct listing where no shares are sold ahead of the opening, marks another milestone in the development of bitcoin and other digital assets. It comes amid a surge in the value of cryptocurrencies which has lured a clutch of mainstream, top-tier firms that have dived into the space.

    The stock opened at $381/share, up 52.4% from a reference price of $250/share set on Tuesday, though only 10.9% above the $343.58 volume-weighted average price Coinbase’s shares were trading at privately in the first quarter of 2021.

    The stock closed at $328.28, which gives Coinbase a fully diluted valuation of $85.8-billion, including unvested stock options and restricted stocks

    The stock closed at $328.28, which gives Coinbase a fully diluted valuation of $85.8-billion, including unvested stock options and restricted stocks, and a market capitalisation of $65.4-billion. By comparison, New York Stock Exchange owner Intercontinental Exchange has a market cap of around $66-billion.

    Founded in 2012, the San Francisco-based firm boasts 56 million users globally and an estimated $223-billion assets on its platform, accounting for 11.3% of crypto asset market share, regulatory filings showed.

    ‘Very grateful’

    “We’re just very grateful to be able to bring transparency to the crypto economy, the ecosystem that we’ve all been building over the last 10 years,” Coinbase chief financial officer Alesia Haas said in an interview. “It just brings this level of recognition that this is an industry that is here, that is growing, and that is not just in the corners.”

    Coinbase was valued at just under $6-billion as recently as September, but has surged in line with bitcoin’s gains this year. The world’s biggest and best-known cryptocurrency hit a record of over $63 000 on Tuesday and has more than doubled in value this year as banks and companies warmed to the emerging asset.

    The company’s most recent financial results underscore how revenues have surged in lock-step with the rally in bitcoin trading volumes and price. In the first quarter of the year, as bitcoin more than doubled in price, Coinbase estimated revenue of over $1.8-billion and net income between $730-million and $800-million, versus revenue of $1.3-billion for the entire 2020.

    “The correlation to bitcoin will be very high after the stock stabilises after listing,” said Larry Cermak, director of research at crypto website The Block. “When the price of bitcoin goes down, it’s inevitable that Coinbase’s revenue and inherently the price of the stock will decline as well.”

    Regulatory risks also loom, others said, as Coinbase increases the number of digital assets users can trade on its platform. Coinbase last year suspended trading in major digital currency XRP after US regulators charged associated blockchain firm Ripple with a $1.3-billion unregistered securities offering. Ripple has denied the charges.  — Reported by Echo Wang, with additional reporting by Niket Nishant, Tom Wilson and Anna Irrera, (c) 2021 Reuters

    Bitcoin Coinbase Coinbase Global top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleDell to spin off VMware
    Next Article TSMC is on fire. Just beware of the flames

    Related Posts

    This crypto winter will be long, cold and harsh

    19 May 2022

    TikTok plans big push into gaming

    19 May 2022

    Why fibre is the new utility – and what it means for South Africa

    19 May 2022
    Add A Comment

    Comments are closed.

    Promoted

    Why fibre is the new utility – and what it means for South Africa

    19 May 2022

    Why data protection is the key to successful digital transformation

    19 May 2022

    Putting IT monitoring on the spot

    18 May 2022
    Opinion

    From spectrum to roads, why fixing SA’s problems is an uphill battle

    19 April 2022

    How AI is being deployed in the fight against cybercriminals

    8 April 2022

    Cash is still king … but not for much longer

    31 March 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.