Coinbase closed the first day of trading 14% below its debut price at $381 but still 31% up from its reference price of $250 as we can see more in our latest Coinbase stock news.
Coinbase went public today and debuted on NASDAQ with $381 per share. It did shot up to $424 before tumbling to $310 and ending the day at $328 which is still higher about 31% than the reference price.
Coinbase closed the debut of $COIN which marked an important moment in the crypto industry. The exchange is now the biggest American crypto exchange that went public with a market cap of over $85 billion. It’s seen investments from the likes of Marc Andreessen and Fred Wilson which is why it played a huge role in bringing the US traders closer to popular cryptocurrencies like ETH or BTC.
However, the listing yesterday was the biggest step of a crypto company into the mainstream. PayPal, Square, Morgan Stanley, Tesla, and BlackRock all dabbled into BTC-related investments in the past few months but Coinbase’s valuation is spotlighting crypto in a major way. In a contrast, Facebook went live with a valuation of $104 billion while Uber at $82 billion.
The price of $COIN is also different from other tech stocks that were tied to the performance of the crypto market. Coinbase made money by taking a huge chunk of each transaction on the platform and the more trades there are, the better the exchange does as well. When Bitcoin sends the market up, as it already has in the past few months, it tends to mean more volume for the exchange. Thanks to the current market sentiment, Coinbase is coming off its best quarter ever that it made in Q1 of 2021 compared to all of 2020.
As reported yesterday, The Coinbase Stock $COIN, debuted on Nasdaq moments ago at a price of $381 which is 51% higher than the reference set at $250. The $381 share price gives the company a valuation under $100 billion but it’s more important to know that today’s direct listing, wasn’t an IPO. Where an IPO involves new shares, a direct listing sells the existing equity without dilution. This makes sense for a company like a crypto exchange especially coinbase as it has been around for more than ten years and raised hundreds of millions in venture funding.
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