Coinbase on course for $100 billion pre-IPO valuation

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Shares in Coinbase reached a valuation of $90 billion ahead of the cryptocurrency company’s imminent public listing, Bloomberg reported.

Citing people with knowledge of the upcoming listing, the news outlet said shares of the crypto firm changed hands for $350 each last Thursday through a Nasdaq Private Market auction.

A Coinbase Series E funding round in 2018 first saw the company’s stock worth around $8 billion. That valuation grew as shares were then privately traded at $200 a piece on a private forum formed by Coinbase in January.

On track for $100 billion valuation

Some of the prominent bitcoin and crypto exchange’s shares had earlier traded at $375 a share, which set it on course for a $100 billion valuation, Bloomberg disclosed.

Private trading is more prohibitive, and volumes are normally limited compared to those in public markets and not an ideal representation of the company’s value, analysts say. The Nasdaq private market is a unit of Nasdaq focused on trading shares in companies before they go public.

The sources also indicated the auction is the last time that shares of Coinbase will be privately traded before the digital currency exchange’s public listing on Nasdaq later this month.

Coinbase’s market cap could vary once the exchange goes public, as only a small chunk of its shares trade on the private market.

The first direct large-scale listing on Nasdaq

Coinbase made public its intention to launch an IPO in the middle of last year before filing registration with the U.S. Securities and Exchange Commission in December.

Coinbase shifted from a loss to a profit of around $322 million in 2020 on net revenue that grew more than two-fold to $1.15 billion, its filings show.

Coinbase’s public listing will become the first massive direct listing on the Nasdaq, an alternative to an initial public offering.

Launched in 2012, Coinbase represents one of the most enduring cryptocurrency exchanges in the industry.

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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