Coinbase Gets Over a $100 Billion Valuation in Private Market Sale
Ready to beat even Facebook. Meanwhile, the pre-IPO contracts CBSE on FTX are trading over 12% higher than the latest sales round.
Ahead of the upcoming public listing, Coinbase, the largest cryptocurrency exchange in the US, was valued at just over $100 billion in a private market share sale.
This means Coinbase can go public at a higher valuation than even Facebook, which went above $104 billion. Santiago R Santos, Partner at ParaFi Capita said,
“Coinbase will capture investors’ imagination on the value creation to be had in crypto, remove some lingering stigmas, & highlight the capital efficiency of DeFi protocols.”
1/ Coinbase's IPO will have a similar effect than Google's. Google IPO'd in '04 starting a tech mega cycle.
Investors scarred from the dot-com bubble were first dismissive & then appreciated how Google (tech 2.0) was much different vs. tech 1.0 (https://t.co/YlXPtYxBbQ etc.)
— Santiago R Santos (@santiagoroel) February 17, 2021
The exchange generated net income of $141 million in the first nine months of 2020, reported Axios, citing multiple sources. Coinbase also disclosed a $30 million net loss on $530 million in revenue for the year of 2019.
In its 2020 in Review report, the exchange disclosed that it has a 43 million user base, which increased sharply last year.
Coinbase is also the one that has been helping companies like Tesla, MicroStrategy, and hedge funds buy huge amounts of Bitcoin.
Interestingly, these numbers don't include 2021, when the bulls went wild, Bitcoin hit a $1 trillion market cap, and the total crypto market cap is past $1.7 trillion. The significant rise in the value of cryptocurrencies has the trading volume on exchanges breaking records and user sign-ups sustaining new ATHs.
Coinbase launched a secondary share sale via Nasdaq Private Market, where it offered up to 1.8 million shares in weekly batches. As we reported, the exchange decided to go public via direct listing instead of IPO, and this sale was to help it determine a reference price for public offering.
The initial batch of 75k shares was sold at $200 per share on Jan. 29, and the next two batches were sold at $301 and $303, respectively.
The most recent batch of 127,00 shares was sold at $373 on Friday, putting out a valuation of $100.23 billion, compared to $8 billion it received during its venture capital round in late 2018.
The pre-IPO contract of Coinbase (CBSE) is currently trading above $420 on FTX, down from $432 last night.
Coinbase pre-IPO contracts give it an expected $90B valuation. Compare with these exchange tokens:$BNB $19B MC ($23.5B f.diluted)$FTT $1.9B MC ($7B f.diluted)$HT $2.2B MC ($6B f.diluted)$OKB $2.2B MC ($2.4B f.diluted)
These exchanges all have higher volume than Coinbase
— Alex Krüger (@krugermacro) February 16, 2021
“Coinbase generated $141M in net income on $691M in revenue for the first 9 months of 2020. At $100B mkt cap trading in secondary markets, Coinbase has an implied 710x P/E.”
Compared to Coinbase’s income, in the past 24 hours, DEX Uniswap collected more than $3 billion in fees, $1.3 billion was recorded on Compound and SushiSwap each, while Binance Chain did almost $800k, as per Crypto Fees.