Coinbase shares jump 50 per cent on debut, valuing it at $100bn
Digital currency platform Coinbase saw its value shoot upwards today as it smashed expectations on its market debut on the Nasdaq exchange.
The firm saw its shares rose 52.4 per cent to $380 per share as its much anticipated float kicked off on the tech-heavy market this afternoon.
The surge sent the crypto firm’s value up to $99.6bn, far exceeding the $65bn estimate set last night.
That’s on par with the debuts of fellow tech giants Facebook and Airbnb.
The company has opted for a direct listing which means no new shares will be issued with shares made available for existing investors at a reference price of $250 per share.
Coinbase is the first major cryptocurrency company to go public in the US amid a strong appetite for alternative assets during the economic turmoil.
The company generates its revenue from charging fees when investors buy or sell cryptocurrencies so profit could further increase particularly in times of market volatility.
In its most recent quarterly update, Coinbase announced that it expects to make between $730m to $800m in the first quarter. The company has 56m verified users, and its latest results showed the company turned over $1.8bn in the first three months of its fiscal year.
“The company’s aggressive growth, underpinned by an increasingly dominant presence in the West, has laid the groundwork for what will surely be one of the most important listings in tech, and a complete game-changer for the crypto industry,” Lior Messika, founder and managing partner of Eden Block said.
Bitcoin continues to climb to fresh highs, breaking the $64,000 barrier this week.