Coinbase has opted for a direct listing on Nasdaq today (April 14, 2021). It is the first cryptocurrency exchange to make a debut in the stock market. Ahead of the listing, there was a surge in the valuation of Bitcoin (BTC), which touched an all-time high of $63,825.56.
At 9.09 am IST, the popular cryptocurrency was trading at $63,255.46 per BTC. It was not limited to Bitcoin but other cryptocurrencies such as Ethereum and Cardano that saw a rise in their valuation too. At 9.09 am, Ethereum touched an all-time high of $2,325.50. According to a Bloomberg report, the price of Bitcoin could climb as high as USD 4,00,000 this year. From that month's average price, Bitcoin increased a little over 50 times to the peak in 2017.
On Tuesday, Nasdaq set Coinbase’s reference price for its direct listing at $250. The exchange which started in 2012 allows trading in cryptocurrencies such as Bitcoin, Dogecoin, Ethereum and others. The company is going to get listed in the traditional exchange at a staggering valuation of about $100 billion.
The company, founded by former Airbnb engineer Brian Armstrong and an ex-Goldman Sachs trader Fred Ehrsam, has 43 million users now and 7,000 institutions using the platform, according to the company’s SEC filing.
According to Coinbase’s preliminary first-quarter results, the revenue in the period surged ninefold to $1.8 billion. Meanwhile, the company reported a net income of $730 million. The rise in income is mainly due to the rise in valuation and transaction of Bitcoin and Ethereum. But the exchange makes revenue from other businesses as well.
Despite the fear of regulations and a ban in cryptocurrency trading in India in future, the exchange Coinbase has established its presence in India. The company is hiring employees for IT services, including engineering, software development and customer support operations in India. The company also announced plans to open a physical office in Hyderabad.
