Not many people knew about Coinbase a year ago but today it is one of the big players on the global economic scene, thanks to a historic IPO with a valuation that has finally soared to nearly $100 billion.
That figure contrasts with the $8 billion at which the company was valued after its last investment round in 2018. Its IPO could not have come at a better time: Bitcoin is at record highs and is dragging a contagious optimism for cryptocurrencies that have been conquering the institutional market for months.
Coinbase IPO increased the company’s value by 50 percent
Coinbase has debuted on the stock exchange at $381 per share. Over the last few hours, the share has risen to $429.
Following various rumors of the possible value of the stock, Nasdaq set its benchmark value at $250 per share, which equated to an initial valuation of $65.3 billion.
Before Coinbase had indicated its market value was at $68,000 based on private market transactions, it was at $5.8 billion in September 2020.
The astonishing growth of this valuation is a direct consequence of the new golden age of cryptocurrencies, which have finally convinced financial institutions and private companies such as Tesla to use Bitcoin as a payment method.
Bitcoin’s value skyrocketed in a year
Coinbase’s IPO comes at an ideal time, the cryptocurrency market is currently breaking records, and in fact, Bitcoin managed to exceed $64,000 yesterday, when a year ago its value was $6,700.
Experts believe that Coinbase’s IPO is the definitive proof of the maturity of cryptocurrencies. We are now seeing Bitcoin accepted by institutions of all kinds and it is gradually becoming a serious alternative for the future.
That is not to say that there are no doubts about the future of cryptocurrencies in general and Coinbase in particular. Regulations in this segment still depend on an absolutely volatile market such as that of cryptocurrencies.
Coinbase’s role may also not be what it is now in the near future. This exchange or cryptocurrency trading market is now a clear reference in these transactions, but that could change.