On its IPO, Coinbase posted rapid gains and reached a price of $ 429 per share, but eventually closed lower.
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April 15, 2021 4 min read
The long-awaited debut of the cryptocurrency exchange Coinbase on the stock exchange was a veritable roller coaster ride. Yesterday, Wednesday, its shares reached a price of $ 429.54 and the company exceeded $ 100 billion in market capitalization . Everything indicated that his first day at Nasdaq would be a resounding and legendary success, but in the end it closed lower .
On Tuesday night, hours before going public, Coinbase set a reference price of $ 250 per share, although none were sold at that price.
Coinbase started with a direct listing , allowing existing employees and shareholders to immediately sell shares at a market-based price. Thus, the cryptocurrency exchange follows in the footsteps of technology companies such as Spotify, Slack, Palantir and Roblox, which helped standardize the process.
The shares opened at $ 381 each and quickly soared to $ 429.54 . This brought the exchange to a market capitalization of over $ 100 billion , at least for a little while.
– Coinbase (@coinbase) April 14, 2021
As the hours passed, Coinbase shares fell well below the debut price to a low of $ 310 .
Finally, Coinbase shares closed at a price of $ 328.28 and a market capitalization close to $ 85.8 billion . However, if options and restricted stock units are excluded, the final capitalization would be approximately $ 62 billion .
Despite this apparent setback, the figure represents a big jump, as it should be remembered that in its last round of private financing, in 2018, investors valued Coinbase at $ 8 billion .
This is how Coinbase has grown in less than 10 years
Founded in 2012 to simplify the purchase of cryptocurrencies , Coinbase has become the most popular exchange platform in the United States.
It currently has 56 million users , up from 43 million at the end of 2020 and 32 million the previous year. Additionally, the number of monthly transaction users (MTU) increased from 2.8 million to 6.1 million in the last three months.
The recent growth of Coinbase has been surprising because it is linked to the explosion of cryptocurrencies such as Bitcoin and Ethereum . In the last year, both have registered historical increases that are around 800% and 1,300%, respectively.
Last week, announcing preliminary first-quarter results, the company said that revenue in the period increased nine times from a year ago to $ 1.8 billion, while its net income rose from $ 32 million to a range of between $ 730 million. and 800 million dollars.
Brian Armstrong , Coinbase co-founder and CEO , owns 39.6 million shares of the company and his fortune is estimated at $ 6.5 trillion , according to the Forbes Billionaires Ranking.