U.S. markets closed
  • S&P Futures

    4,306.25
    -1.50 (-0.03%)
     
  • Dow Futures

    34,117.00
    -1.00 (-0.00%)
     
  • Nasdaq Futures

    13,646.25
    -12.00 (-0.09%)
     
  • Russell 2000 Futures

    2,023.30
    0.00 (0.00%)
     
  • Crude Oil

    86.71
    +0.18 (+0.21%)
     
  • Gold

    1,789.80
    +0.10 (+0.01%)
     
  • Silver

    20.07
    -0.01 (-0.07%)
     
  • EUR/USD

    1.0171
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    2.8240
    +0.0330 (+1.18%)
     
  • Vix

    19.69
    -0.26 (-1.30%)
     
  • GBP/USD

    1.2106
    +0.0011 (+0.09%)
     
  • USD/JPY

    134.1620
    -0.0530 (-0.04%)
     
  • BTC-USD

    24,004.58
    -184.32 (-0.76%)
     
  • CMC Crypto 200

    571.12
    -0.80 (-0.14%)
     
  • FTSE 100

    7,536.06
    +26.91 (+0.36%)
     
  • Nikkei 225

    29,096.32
    +227.41 (+0.79%)
     

Major Crypto Exchange Coinbase Closes In On Going Public With Pre-IPO Valuation Of $100B

·2 min read

What Happened: Leading cryptocurrency exchange Coinbase Global Inc could soon be valued at $100 billion after officially going public, based on Nasdaq's private auction results last week.

According to Bloomberg, shares of Coinbase traded between $350 and $375 per share, giving the company a pre-IPO valuation of between $90 to $100 billion.

Bloomberg reported that the private auction ended with shares trading at a price of $350 per unit.

See also: How to Buy Coinbase IPO (CBASE) Stock

Why It Matters: While private trading is more restrictive and volumes are more constrained than public markets, the Nasdaq private market serves as an important part of determining a reference price for investors ahead of the direct listing.

Coinbase’s last funding round in 2018 put it at a valuation of $8 billion. In January 2021, the company saw its valuation increase to around $50 billion based on privately traded shares on a private forum created by Coinbase.

The exchange’s CEO Brian Armstrong is likely to see a compensation package of over $1 million per working day, based on his $15 billion stake in the company, Bloomberg has reported.

What Else: The cryptocurrency exchange opted for a direct listing rather than a traditional Initial Public Offering (IPO), making this the first major direct listing on the Nasdaq.

Based on Coinbase’s filings, owners of Class A common stock will be allowed to sell in the direct listing and will not be subject to lock-up agreements. The filings also disclose that Class A stock carries one vote per share, while Class B carries 20 votes per share. Coinbase has also stated that it will not raise any proceeds in the transaction.

See also: Coinbase Review

Coinbase is the largest U.S based cryptocurrency exchange, and with a 24-hour trading volume of $3.2 billion, it accounts for a large portion of cryptocurrency trading worldwide.

At the time of writing, the market-leading cryptocurrency Bitcoin was up by almost 8%, trading at $53,883 as most altcoins were also trending higher in price.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.