Coinbase Hits $100 Billion Valuation in Nasdaq Debut
The cryptocurrency platform’s initial valuation put it above BP and other giants before falling back by trading’s end.
Coinbase, the US’s largest cryptocurrency exchange, reached a valuation of over $100 billion on its first day of public trading on Wednesday.
The company was valued at $99.6 billion when trading opened, with stocks priced at $381 apiece. This price would later fall to $328.28, but not before reaching the $100 billion milestone.
Coinbase’s stock market debut, and the implications it creates for cryptocurrencies becoming part of mainstream finance, spurred enthusiasm among crypto investors. Bitcoin reached an all-time high of $63,000 on Tuesday ahead of the platform’s listing.
“Today is a big moment for @coinbase as we become a public company,” tweeted Coinbase co-founder and CEO Brian Armstrong on Wednesday. “But it’s also a big one for crypto.”
The value of Bitcoin and other cryptocurrencies has soared over the past year as major firms including Tesla, Mastercard and PayPal have revealed plans to incorporate digital tokens into their business models. Bitcoin itself rose 300% last year and has continued to climb since January.
Smaller currencies have also benefited from the surge. Joke token Dogecoin has risen over 70% in the past year, reaching 13 cents per coin.
Coinbase was founded in 2012 and had more than 56 million users at the end of March 2021. It also held around $223 billion in users’ assets.
The firm’s market cap has increased more than tenfold since 2018, when investors in a private funding round valued it at $8 billion.