The cryptocurrency giant Coinbase Global Inc. get ready for investors who expect to make a big debut in the stock market, although there are still doubts about its high valuation.
Coinbase plans to announce Wednesday through a direct listing on the Nasdaq stock market. The company, which manages the largest US exchange for bitcoin and other digital currencies, can achieve a greater market capitalization than any of the world’s traditional exchange operators. But it faces a number of threats, including competition in the rapidly evolving cryptocurrency industry, which could undermine the share price in the long run.
Based on the price of Coinbase shares in the private market trading earlier this year, the company is worth $ 91.5 billion on a fully diluted basis, according to the submission of securities. And Coinbase reached the valuation even before the blowout results for the first quarter were announced, when it benefited from a major rally in the price of bitcoin.
During the first three months of 2021, Coinbase attracted 13 million new users and estimated that it earned revenue of $ 730 million to $ 800 million with revenue of $ 1.8 billion. Even at the bottom of the earnings range, it has more than doubled its profit for the past year.