Is Coinbase valuation soars to $68 billion?

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Ella Jones, Deputy Editor In Chief

Date: 24.03.2021

Cryptocurrency exchange Coinbase has reached an implied $68 billion valuation ahead of its highly anticipated direct listing on the Nasdaq.

The latest valuation is based on a volume-weighted average share price Coinbase cited in a revised S-1 filing released Wednesday. The company reported private shares trading at $343.58 apiece for the first quarter of 2021 ended March 15, which increases the company’s valuation 13-fold.

According to PitchBook data, the company was last valued at $8 billion in October 2018.

The revised regulatory filing also shows that the company has more than 196 million shares outstanding for the first quarter of 2021, resulting in the latest valuation figure. While private market value is less indicative of a company’s share worth, the Nasdaq will use that information to set a reference price for the company ahead of its direct listing.

Coinbase’s first filing in February showed the company reported a profit of $322 million last year on net revenue that more than doubled to $1.1 billion.

A direct listing is an alternative to an IPO, and it involves investors and employees converting their ownership stakes into stock that’s listed on an exchange. Founders have become increasingly disenchanted with the IPO process in recent years, leading to a boom in direct listings and special purpose acquisition vehicles

by Ella Jones | Linkedin

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