Coinbase, the first major cryptocurrency company to go public in the US despite a strong desire for alternative assets during the economic turmoil saw its shares rise to 52.4 per cent following its market debut on the Nasdaq exchange. The surge which is on par with fellow tech giants like Facebook and Airbnb sent the crypto firm’s value up to $99.6bn, far exceeding the $65bn estimate earlier set. While the company generates its revenue from charging fees when investors buy or sell cryptocurrencies, it opted for a direct listing which means no new shares will be issued with shares made available for existing investors at a reference price of $250 per share.
With Coinbase’s latest results showing the company turned over $1.8 billion in the first three months of its fiscal year the company in its recent quarterly update announced that it expects to make between $730m to $800m in the first quarter. According to the founder and managing partner of Eden Block, Lior Messika, “The company’s aggressive growth, underpinned by an increasingly dominant presence in the West, has laid the groundwork for what will surely be one of the most important listings in tech and a complete game-changer for the crypto industry.”
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