Coinbase, the U.S. cryptocurrency trading giant, has set a benchmark price for its direct listing at $ 250 per share. According to the company’s latest filing with the SEC, the number of diluted shares is 261.3 million, giving the company a valuation of $ 65.3 billion. Using a simple tally of 196,760,122 shares provided in its latest S-1 / A filing, Coinbase would be worth $ 49.2 billion.
Regardless of the number of shares used to calculate the company’s valuation, its new value is a thousand above its final private price set in 2018, when the company was worth $ 8 billion.
The immediate chatter after the company’s direct listing benchmark price was that the price might be low. While Coinbase doesn’t suffer the usual venture capital censorship if its shares appreciate quickly because it doesn’t sell shares when it goes public, it would still be slightly humorous if its set benchmark price was just a benchmark. to an overly conservative estimate of its value.
Its private backers go both ways. About four years ago, in 2017, Coinbase was worth just $ 1.6 billion, according to data from Crunchbase. For investors in this cycle, let alone their first fundraising, the valuation implied by a price of $ 250 per share is a multiple of about 40x of the price they paid.
Coinbase’s direct listing was recently turbocharged when the company presented a first glimpse of its performance in the first quarter of 2021. As TechCrunch reported at the time, the recent growth of the company was impressive, with revenue dropping from $ 585.1 million in the fourth quarter of 2020 to $ 1.8 billion in the first three months of this year. The new numbers ignited the public debut of an already hot company.
Place your bets now on where Coinbase could open and on the rise in value. It’s going to be quite a spectacle.