Coinbase Sets $250 Reference Price Ahead of Massive Public Debut
Cryptocurrency exchange Coinbase establishes a $250 per-share reference price for its direct listing, pushing its valuation to nearly $65 billion. This massive milestone highlights explosive revenue growth and yields huge returns for early private investors.
Cryptocurrency exchange Coinbase sets a reference price of $250 per share for its upcoming direct listing. Based on its fully diluted share count, this pricing gives the company a staggering valuation of approximately $65.3 billion. This valuation represents a massive leap from the company's $8 billion private valuation in 2018.
Market observers immediately suggest that this reference price is potentially conservative. Because Coinbase conducts a direct listing instead of a traditional initial public offering, it does not sell new shares or face the same pressures from venture capitalists. Early investors still see incredible returns regardless of where the stock actually opens, with some early backers looking at a 40x return on their 2017 investments.
The company's public debut benefits from explosive recent financial performance. Coinbase reports an incredible surge in revenue, jumping from $585.1 million in the fourth quarter of 2020 to $1.8 billion in the first quarter of 2021. This phenomenal growth sets high expectations for the trading platform as it finally enters the public markets.