Coinbase Private Sale on the Nasdaq has valued the company at $ 90 billion. According to Bloomberg, sources close to the publication reported an initial valuation of the stock. Specifically, investors at the auction valued Coinbase shares at $ 350 each. The closed auction on the closed market of the Nasdaq stock exchange ended on 4.03.21.
Coinbase Private Sale
Coinbase is one of the most respected and valuable crypto companies on the market. Private sale is usually a guideline for the value of public shares. This is the final round of the private proposal. Upon its completion, the exchange will receive the status of a public one. This approach:
- reduces costs;
- makes it possible to avoid dilution of shares;
- is a sign of trust in the company.
Plus, Coinbase stock investors won’t have to endure a Lock UP.
In January 2021, Coinbase representatives reported. They will seek direct listing. That is, the usual IPO will not be. The approval of the filing of the SEC application showed that the shares will be quoted as a class A security. Well, the trading will take place under the ticker COIN.
Coinbase is one of the most famous players among crypto exchanges. Its public listing is a major milestone in the stock and crypto markets. As many as 8 other crypto firms want to follow in her footsteps. These include Gemini exchange, eToro’s social trading platform, and MicroBT, which manufactures cryptocurrency mining equipment.
This was partly due to the massive rally in the crypto market over the past year. Emmanuel Goh, CEO of information aggregator Skew, told Bloomberg. “Bellwether companies are already making a profit.”
The influx of institutional investment, which is the main reason for the rally, is also behind the increased interest in Coinbase and other crypto IPOs. Experienced investors plan to take advantage of the increased interest in the crypto market for their own purposes.
What role will Coinbase’s entry into the market have?
If in 2017 it was not yet obvious to everyone that cryptocurrencies were with us forever, now the situation has changed. Large funds are buying up bitcoin and ether with might and main, and are also looking for regulated investment opportunities. Buying shares of large cryptocurrency exchanges is just one of them. That is, institutional investors can invest in the crypto industry in their usual mode.
This confirms once again that the era of digital assets is just beginning. And to believe that this is all a “bubble”, “scam”, “pyramid” is simply stupid.