Coinbase celebrates crypto’s ‘coming out party’ with $86 billion IPO valuation

Coinbase, a start-up that made it possible for people to buy and sell cryptocurrencies, celebrates what is being dubbed now as crypto’s “coming out party” by going public.

Doing it with flair and style, Coinbase shares started trading at $381 and closed at $328.28, resulting in a company valuation of $85.7 billion, based on its outstanding shares. That’s ten times higher than its last private valuation and rivaled Facebook’s and Airbnb’s when they went public too.

If this is any indication, it is a strong showing that digital currencies, once only seen and often ridiculed as a tool for criminals, are now making their way into the mainstream.

Finally, Some Answered Questions

Bradley Tusk of Tusk Venture that is backing Coinbase said that the company’s listing finally provided answers to questions such as “Is crypto a real thing?” He said that any industry that can start an IPO of this magnitude is definitely real and can be proven by the market.

The move also gave wary investors the chance to own stocks in a business that is approved by the Securities and Exchange Commission. That way, they no longer have to worry about the risks of buying digital currencies.

It is no wonder then that cryptocurrency advocates are celebrating what they deem is a vindication for their long-held belief in the potentials of their cause.

Coinbase Boasts Healthy Profit

The listing of Coinbase also provided a window from which the financial world can see its healthy profits, which is, unfortunately, lacking in other highly valued tech start-ups.

Basing on company data, Coinbase has 1,700 employees and 56 million registered users. In the first three months of the year, it reported an estimated net profit of $730 million to $800 million and brought in revenue of $1.8 billion.

It is something that both supporters and critics of digital currencies can now look into to help shape their perspective of the industry and its true potentials.

 

Image courtesy of Alesia Kozik/Pexels

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.