Large Cryptocurrency Exchange Coinbase Set to Go Public
April 15, 2021
Cryptocurrency exchange Coinbase was
set to go public Wednesday at an initial price of $250 per share.
The initial public offering for Coinbase Global Inc. comes as the world’s
largest cryptocurrency, Bitcoin, reached all-time highs, breaking over $64,000
“The Coinbase IPO is potentially a watershed event for the crypto industry and
will be something [Wall] Street will be laser focused on to gauge investor
appetite,” Wedbush Securities analyst Daniel Ives wrote this week, the
Associated Press reported.
“Coinbase is a foundational piece of the crypto ecosystem and is a barometer for
the growing mainstream adoption of Bitcoin and crypto for the coming years,”
The U.S.-based company’s revenue doubled last year to $1.14 billion as verified
users of the platform swelled to 43 million, AP reported. After losing millions
in 2019, the company made a profit of $322.3 million in 2020.
The company also said for the first quarter of 2021, it had $1.8 billion in
revenue and a net income of between $730 and $800 million.
analysts think the company could be valued at over $100 billion.
The company is the largest crypto company to go public and will trade under the
Some see investing in the stock to buy into the crypto market but avoid the
volatility of cryptocurrency.
“It could also be a less volatile security than the coins themselves,” said Lule
Demmissie, president of Ally Invest, according to AP.
“It’s going to legitimize a lot of what these companies are doing," Marcus
Swanepoel, CEO of London-based crypto platform Luno, told NBC News about the
IPO. "For one, it’s going to show just how big the industry is and how much it’s