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Market Debut Gives Crypto Currency Exchange Coinbase A Value Of $86 Billion

Market Debut Gives Crypto Currency Exchange Coinbase A Value Of $86 Billion
The public listing debut of the United States based cryptocurrency exchange Coinbase Global Inc at the NASDAQ valued the company at $86 billion on Wednesday in a day when its valuation reached as high as $112 billion.
The share market debut of Coinbase, which listed itself via a direct listing where no shares are sold ahead of the opening, is also a milestone in the path of cryptocurrency taking another step for wider acceptance in the broader financial world.
The listing also coincide with a huge growth in the value of cryptocurrencies which has drawn a bunch of mainstream, top-tier companies that have started to show interest in this asset class.
Coinbase's stock opened at $381 per share, up 52.4 percent from a reference price of $250 per share set on Tuesday though only 10.9 percent above the $343.58 volume-weighted average price Coinbase's shares were trading at privately in the first quarter of 2021.
Coinbase had a fully diluted valuation of $85.78 billion when the stock closed at $328.28 which included unvested stock options and restricted stocks. The market capitalization of company was at $65.39 billion.
There are a total of 56 million users globally with the Coinbase platform, the San Francisco-based company which was founded in 2012 claims which accounts for about 11.3 per cent of crypto asset market share, showed regulatory filings of the company.
"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."
As on Tuesday, bitcoin, the value of the biggest and best-known cryptocurrency of the world touched a record more than $63,000 as the crypto currency has more than doubled in value this year alone even as some banks and companies issued warning of this emerging asset class.
With the acceleration of the leap of cryptocurrency to the top table of finance by the multi-billion dollar stock market listing of Coinbase Global Inc, the company’s founder and CEO Brian Armstrong is also set to reap the benefits form the nine year journey of the company.
According to the regulatory filing of the company, 21.7 per cent of the stocks of the company is owned by Armstrong which was worthy about $20 billion based on the projected value of the company.
At the time when Armstrong founded Coinbase in 2012, achieving this paper fortune might have been hard to imagine as bitcoin had been invented just four years ago by the pseudonymous Satoshi Nakamoto.
That year the crypto currency had reached a peak of just $16 which showed that only online enthusiasts possessed knowledge of cryptocurrencies. In comparison, the current value of bitcoin was more than $63,000.
"I remember meeting Brian in 2013/2014," said Tom Glocer, an early Coinbase investor and former CEO of Thomson Reuters. "Brian had a well-formed, mature vision of the key elements that needed to be built to bring crypto into mainstream finance and commerce."

Christopher J. Mitchell

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