The San Francisco-based company’s listing on a public stock exchange is seen by some as an inflection point for digital currencies, as Coinbase’s fortunes are closely tied to Bitcoin, the most popular cryptocurrency.
Coinbase’s value is greater than the combined market value of Nasdaq Inc., which runs the Nasdaq Stock Market, and Intercontinental Exchange, which owns the New York Stock Exchange.
If Bitcoin or Etherium prices drop, the commissions Coinbase earns drop as well, giving it some exposure to the digital currencies’ rise and fall.
That means it avoided the typical agreements with big banks that would buy thousands of shares and promote them.
Bitcoin’s price has topped $63,000, up from $29,000 at the start of the year, and Coinbase said recently that first-quarter revenue should total around $1.8 billion, exceeding its revenue for all of 2020.
companies — just 83 companies in the S&P 500 index have market values above $100 billion.
Coinbase earns 0.5% of the value of every transaction that goes through its system.
A direct listing allows insiders and early investors to convert their stakes in the company into publicly traded stock.
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