The historic IPO, virtual currency exchange Coinbase is valued at $ 86 billion

Coinbase’s valuation fluctuated sharply in the first session on the Nasdaq on Wednesday, reaching $ 112 billion, but closing at $ 86 billion.

The IPO of Coinbase, the largest crypto exchange in the US, is considered a major milestone in the development of Bitcoin and other digital currencies. This listing took place in the context of a sharp increase in virtual currency prices, attracting the attention of a series of mainstream investors.

Coinbase shares opened at $ 381 per share, up 52.4 percent from the reference price of $ 250 per share set a day earlier, according to Reuters. At the close, the share price reached $ 328.28 per share, equivalent to a valuation of $ 85.78 billion – including stock options and limited stock options. Coinbase’s market capitalization, excluding these securities, reaches $ 65.39 billion.

Meanwhile, the Intercontinental Exchange, which owns the New York Stock Exchange (NYSE), has a market capitalization of $ 66 billion.

Founded in 2012 and headquartered in San Francisco, Coinbase has 56 million global users and an estimated net worth of $ 223 billion across the entire platform, accounting for 11.3% of all crypto market assets. .

In September last year, Coinbase was valued at only $ 6 billion. The valuation then continued to rise with Bitcoin’s skyrocketing momentum. On Wednesday, Bitcoin’s price set a new all-time high above $ 63,000, more than doubling since it was at the beginning of the year.

At more than 8 a.m. on Thursday, the Bitcoin price, according to data on Coinmarketcap.com, stood at $ 62,979, down 0.9 percent from 24 hours ago.

Bitcoin’s bullish momentum brought Coinbase revenue and profits to an impressive increase. In Q1 this year, when Bitcoin price doubled, Coinbase’s revenue reached more than 1.8 billion USD, profit reached about 730-800 million USD. For the whole year 2020, Coinbase’s revenue is $ 1.3 billion.

However, the close link between Coinbase’s revenues and profits and Bitcoin’s price has also worried many analysts, as once Bitcoin prices plummet, Coinbase’s revenue and profits could also plummet.