Closing at $328.28, cryptocurrency exchange Coinbase debuted on the Nasdaq stock market. Resultantly, the company was veiled at $84 billion.

Check it. Coinbase stock market debut values crypto exchange at $84 billion https://t.co/S3N8tGoMaT #tech #digital #data #business pic.twitter.com/psZVrlADp0

— Kohei Kurihara -Wish the peace 🇺🇦- (@kuriharan) April 16, 2021

Alternatively, due to the public offering, the company selected the direct listing without issuing any shares. Now the real question is, how does the stock price compare to private equity market prices? As per Coinbase reports, in the first quarter i.e. till 15 March 2021, the estimated price was $343.58. 

Well, what is happening is that some institutions do not hold Bitcoin cryptocurrency directly, hence they look for alternatives such as futures contracts, ETFs, or stocks that are directly related to Bitcoin price. For instance, software company Microstrategy begged a huge amount to buy Bitcoin and put it on the balance sheet. A large part of the price is associated with the price of Bitcoin. e to this, 38% of stocks have been secured by Vanguard, Blackrock, and Morgan Stanley. 

Due to this, 38% of stocks have been secured by Vanguard, Blackrock, and Morgan Stanley. Therefore, moving ahead, Coinbase will feature significantly in such investments. 

How do we Compare Coinbase Valuation?

These days, several market capitalization figures are floating around Coinbase. The rationality is whether you can only count on the issued shares (186 million) or you can include all shares that will be issued under warrants (256 million). And here we have used the later one.

Also, read – NFT firm Yuga Labs is valued at $4 billion after a $450 million seed round

If one accepted that digital assets are the future of finance, then the next question is how can we compare Coinbase’s market capitalization and to what? Will it be equal to broker, stock exchange, a bank, or all of the above?

Crypto Industry is Flourishing

With the current cryptocurrency resonance, Coinbase is booming. However, the company said that their performance is directly linked to the price of Bitcoin and crypto asset volatility.

Before the IPO, the company issued an estimated figure for the first quarter of 2021. The figure shows significant growth. And it is not surprising at all, due to the rise in cryptocurrencies and non-fungible tokens. The revenues for the first quarter were $1.8 billion and whereas, they were $1.27 million. The net income was evaluated at $730 million to $800 million. No doubt, the company faced a loss of $30 million during the 2019 crypto downturn.

But, there is one sunny side for Coinbase and i.e. with the given partnership of Bitcoin, they will be in quite a demand for some time now.