With the long-awaited direct listing of Coinbase approaching, investors with deep pockets seem to be eager to acquire equity in Coinbase.
According to data compiled by The Block, since Coinbase opened its first secondary sale four weeks ago, the average liquidation price of Nasdaq private market shares has continued to rise. The latest liquidation price is $373 per share, which means that Coinbase is valued at approximately $100 billion.
Data shared with The Block shows that this is a significant increase from the first average settlement price of $200 in January.
According to a previous report on January 22, Coinbase told its shareholders that the company will launch a secondary market for its private equity shares on the Nasdaq private equity market before its public listing. This process allows former employees and investors of cryptocurrency exchanges to sell their shares.
Stock sale: Coinbase conducted a second stock sale through the Nasdaq private equity market (also known as the secondary market) last month, offering up to 1.8 million shares every week. The purpose is to help Coinbase determine the reference price of its public offering, and the Coinbase listing process will be completed through a direct listing rather than an IPO.
The first 75,000 shares were sold on January 29 at a price of $200 per share. Coinbase’s valuation reached nearly 54 billion U.S. dollars, and Coinbase received a valuation of 8 billion U.S. dollars in the previous round of venture capital at the end of 2018.
The next two batches were sold for $301 and $303 respectively.
Last Friday, the latest batch of 127,000 shares was sold at a price of US$373, resulting in a valuation of US$100.23 billion.
Coinbase is valued at $100 billion, what does this mean?
The news that Coinbase was valued at $100 billion was also confirmed by Axios. Axios said that this means that since Facebook, Coinbase’s initial valuation may be higher than any other US technology company.
According to the data: According to documents shared with investors, Coinbase’s net income in the first nine months of 2020 was US$141 million and total income was US$691 million.
The company disclosed a net loss of US$30 million for the full year of 2019 and a revenue of US$530 million.
None of these revenue figures include 2021. In 2021, Bitcoin’s price and transaction volume have seen a surge, which has had a very positive impact on Coinbase.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.