$100b Nasdaq debut

Surge in the value of cryptocurrencies

CRYPTOCURRENCY exchange Coinbase Global Inc was valued at almost $100 billion in a Nasdaq debut on Wednesday that marked another milestone in the development of bitcoin and other digital assets.

The company’s stock market debut, done through a direct listing where no shares are sold ahead of the opening, comes amid a surge in the value of cryptocurrencies which has lured a clutch of mainstream, top-tier firms dive into the space.

Coinbase’s stock opened at $381 per share, up 52.4 per cent from a reference price of $250 per share set on Tuesday.

However, the price is only 10.9 per cent above the $343.58 volume-weighted average price Coinbase’s shares were trading at privately in the first quarter of 2021.

At $381, Coinbase has a fully diluted valuation, which includes unvested stock options and restricted stocks, of $99.95 billion and a market capitalisation of $75.9 billion.

Founded in 2012, the San Francisco-based firm boasts 56 million users globally and an estimated $223 billion assets on its platform, accounting for 11.3 per cent of crypto asset market share, regulatory filings showed.

“We’re just very grateful to be able to bring transparency to the crypto economy, the ecosystem that we’ve all been building over the last 10 years,” Coinbase chief financial officer Alesia Haas said in an interview.

“It just brings this level of recognition that this is an industry that is here, that is growing, and that (is not just) in the corners.”

Coinbase was valued at just under $6 billion as recently as September, but has surged in line with bitcoin’s gains this year.

The world’s biggest and bestknown cryptocurrency hit a record of over $63,000 on Tuesday and has more than doubled in value this year as banks and companies warmed to the emerging asset.