Cryptocurrency exchange Coinbase Global Inc. was valued at more than $9 billion at the exchange opening Wednesday, marking another milestone in the development of Bitcoin and other digital assets.
At 11:37 a.m. it was stated that the company’s stocks were opened from 3 open 0 per share, up 44% from the reference price of $ 250 per share, three times higher than exchange operator Nasdaq.
Completed by direct listing, with no shares sold prior to the opening, Conbase’s launch marks a one-year victory for digital currency advocates as mainstream top firms dive into space.
The value of the San Francisco-based company is just under 1 trillion as of last September, but this year it has matched Bitcoin’s gains.
The world’s largest and most well-known cryptocurrency hit a record of £ 63,000 on Tuesday, and its value has more than doubled this year as banks and companies heat up rising assets.
Coinbase’s listing is expected to accelerate this process by raising awareness of digital assets among investors.
Larry Sermac, research director of crypto website The Block, says the relationship with Bitcoin will be much stronger once the stock stabilizes after the list is made.
When Bitcoin’s price drops, it is inevitable that Coinbase earnings and the internal price of the stock will also drop.
Other experts said the risk included exposure to a highly volatile property at Coinbase that is still subject to patch control.
Founded in 2012, Coinbase has 5 million users worldwide and an estimated 22 3.223 billion assets on its platform, and regular files show that 11.3% of crypto assets are for market share.
The company’s latest financial results point to how bitcoin trading volume and price accumulation are driving earnings in key steps.
In the first quarter of the year, Bitcoin more than doubled in value; Coinbase earned 1.6 billion for the entire 2020, and its net revenues ranged from $ 30 million to $ 600 million compared to 1.3 billion.
Others say that regulatory risks are also increasing as Coinbase increases the number of digital assets users can trade on their platform.
Coinbase suspended trading in its major digital currency XRP last year after US regulators accused blockchain company Ripple of 1.3 billion unregistered security offers. Ripple denied the allegations.
Colin Platt, chief operating officer of the crypto platform Unifty, said that the expansion of assets under Coinbase is almost inevitable for the expansion of assets covered by Coinbase.