coinbase logo

Coinbase, Inc., Public domain, via Wikimedia Commons

Coinbase Now Valued at $67 Billion In Light of ‘Crypto Boom’

Coinbase’s stock surged to $429 on its Wall Street debut on Wednesday and temporarily gave the largest U.S. crypto exchange a market value of more than $100 billion.

The initial public offering (IPO) of Coinbase Global Inc. happened amid the rising price of cryptocurrencies, including Bitcoin and Ethereum.

This is widely considered as a momentous event for cryptocurrencies in gaining mainstream spotlight. Several household names have also jumped in on the crypto bandwagon like PayPal, Tesla, and Visa. These companies have started to incorporate digital currencies into their businesses.

Coinbase Stocks Ride Crypto Bullish Trend

The San Francisco-based crypto exchange firm's move to go public is seen by analysts as a clear sign that Bitcoin is still on a bullish trend, as the company’s fortunes are directly connected to the enthusiasm around the top crypto. BTC’s price peaked last Wednesday at $64,000 from its $29,000 price at the start of the year. Further, Coinbase also said that their revenue for Q1 2020 totaled $1.8 billion. This exceeds their total revenue for the rest of 2020.

Coinbase shares bear the ticker “COIN” on Nasdaq. It trades $335 as of writing,  which is 34 percent higher than its  $250 reference price. This then puts a $67 billion price tag on Coinbase, making it one of the largest publicly traded American companies.

To give perspective, Coinbase’s market value is close to Intercontinental Exchange’s value, which is the owner of the New York Stock Exchange.

coinbase first day chart

Knowing Coinbase

Coinbase was founded in 2012 and was recognized as one of the first notable crypto exchanges that provided a user-friendly platform where anyone can trade Bitcoin and other cryptocurrencies. What makes Coinbase stand out is its profitability despite being a barely-a-decade-old company. According to reports, the firm has a net income of $730 million to $800 million in its first quarter alone.

Wedbush Securities Analyst Dan Ives said in a statement that Coinbase is an important part of the crypto community because it speeds up Bitcoin adoption and crypto usage in general.

But despite all the recent developments in the crypto world, Fed Chairman Jerome Powell believes that cryptos remain speculative instruments and that only a handful of people are using them.

Coinbase and Beyond

Coinbase confirms that it has 56 million verified users and deals with more than 6.1 million transactions a month. Meanwhile, trading volume for 2021 Q1 is at $335 million.

Coinbase’s market value signifies that the  ‘crypto boom’ is happening and it’s set to revolutionize the financial world sooner or later. It might happen slowly, but at least, it’s headed in that direction.

coinbase logo

Coinbase, Inc., Public domain, via Wikimedia Commons

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