Coinbase Sets Valuation At $ 68 Billion Before Historic Listing | Business and economic news
Coinbase Global, America’s largest cryptocurrency exchange, says recent private market transactions value the company at around $ 68 billion.
Coinbase Global Inc, the largest cryptocurrency exchange in the United States, said on Wednesday that recent private market transactions valued the company at around $ 68 billion this year ahead of a scheduled listing.
The mind-boggling valuation highlights how the perceived value of Coinbase rallied alongside the soaring price of Bitcoin.
In a regulatory filing, Coinbase said its shares in the private market traded at a weighted average price of $ 343.58 each from the first quarter of 2021 to March 15, compared to $ 28.83 per share in the third quarter ended September 30. .
This represents an almost 13-fold jump in its valuation in the space of a few months. According to the data platform PitchBook, Coinbase was valued at over $ 8 billion when it last raised private funds in October 2018.
Coinbase’s latest deposit also indicates increased confidence that the historic listing will be approved by regulators.
A successful listing of Coinbase, whose business is primarily focused on digital currencies, would represent a historic victory for cryptocurrency advocates vying for approval of an industry that has struggled to gain the trust of traditional investors, regulators and the general public.
It could also be seen as a silent regulatory approval of the assets traded on the Coinbase platform. The company has more than 43 million users in more than 100 countries.
Coinbase did not indicate in the latest filing whether it had received regulatory approval to allow it to trade cryptocurrencies classified as securities in the United States.
San Francisco-based Coinbase’s potential listing also comes as the value of Bitcoin continues to rise, hitting a record high of $ 61,781.83 on Saturday. The price of digital currency has fallen since then as investors consolidated their gains and following news of India’s plan to ban cryptocurrencies.
A regulatory filing last month, which provided the first detailed look at Coinbase’s finances since its inception in 2012, showed it reached a profit last year as Bitcoin surged.
A handful of other crypto companies, including Cipher Mining Inc, are continuing their listing plans despite regulatory uncertainty.
Coinbase, among the world’s best-known cryptocurrency platforms, has registered around 114.9 million shares for its direct listing, according to its latest filing.
The low and high selling price per share in the private market was $ 200.00 and $ 375.01, respectively, from the first quarter to March 15, Coinbase said.
In December, the company confidentially submitted documents to the United States Securities and Exchange Commission for public disclosure.
Coinbase plans to go public via a direct listing rather than a traditional initial public offering. This means that the company does not sell any shares until it debuts in the market, as is the case with initial public offerings (IPOs).