Coinbase Targets $65 Billion Valuation in Landmark Direct Listing
The cryptocurrency exchange sets a $250 per-share reference price for its direct listing, marking a massive increase from its private valuations. Impressive first-quarter revenue growth further fuels anticipation for its public market debut.
Coinbase sets a reference price of $250 per share for its direct listing, giving the American cryptocurrency trading giant a fully diluted valuation of $65.3 billion. This massive figure represents a dramatic increase from the company's $8 billion private valuation in 2018 and a $1.6 billion valuation in 2017. Early investors from those previous rounds see returns of around 40 times their original investment.
Market observers quickly note that this reference price appears conservative and could serve as a low baseline for the actual trading price. Because Coinbase utilizes a direct listing instead of a traditional initial public offering, it does not sell new shares and avoids the typical venture capital backlash if the stock price immediately surges. Private backers still secure a massive financial windfall regardless of the opening price.
The company's public debut benefits from incredible momentum as Coinbase recently reveals staggering first-quarter revenue of $1.8 billion. This explosive growth triples the $585.1 million revenue generated in the fourth quarter of 2020. All eyes remain on the trading floor to see exactly where Coinbase opens and how high its market value ultimately climbs.