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Coinbase set to go public with a $90 billion valuation — and it’s probably heading higher




Coinbase said it set a benchmark price for its shares of $ 250 per share. The company trades shares directly on the Nasdaq, rather than selling new shares through an initial public offering. It’s like Roblox, Palantir i Spotify (STAIN) it also went public.
Shares are likely to start trading later Wednesday morning or early afternoon. But many market watchers expect the stock to rise sharply from its $ 250 reference price, because the company is already profitable, has fast sales growth and a growing number of customers.

By mid-morning, it was indicated that the shares would open at $ 350. This would value Coinbase at $ 91.5 billion.

“When it comes to Coinbase, this is pretty much the cryptocurrency event of the year,” said Jean-Marie Mognetti, CEO of CoinShares, a European digital asset manager, which recently began trading on the Nasdaq Stock Exchange. Nordic. “It shows that bitcoin is for everyone.”

And that will also turn Coinbase CEO Brian Armstrong into a billionaire. Priced at $ 350 per share, its 39.6 million shares will be worth just under $ 14 billion.

Coinbase is mounting the cryptographic wave. Bitcoin prices they have doubled this year and are currently trading at a record price of just under $ 65,000.

Ehtereum, the second most valuable cryptocurrency, has almost tripled thanks in part to the fact that it is the digital payment used in non-expendable or NFT token transactions.

Bitcoin prices have also risen thanks to investments from big companies like Elon Musk Tesla (TSLA) i MicroStrategy (MSTR) as well as guarantees for the cryptocurrency space of large financial companies such as MasterCard (MA), PayPal (PYPL) i Bank of New York Mellon (BK).

“The Coinbase listing should pay more attention to cryptocurrencies and help further legitimize it,” said Rachid Ajaja, CEO of AllianceBlock, a blockchain capital markets company. “You also have more and more financial institutions getting into cryptography.”

That’s why a first-time Coinbase investor said that even if stocks rise during their first few days, it could still be a good buy.

“Would we be Coinbase investors with a valuation of $ 100 billion? Yes,” said Matthew Le Merle, managing partner of Fifth Era & Blockchain Coinvestors, a mutual fund that invested in Coinbase after a round of financing that went valuing the company at $ 8 billion. A few years ago.

Le Merle said buying Coinbase now could be like investing in it apple (AAPL), Amazon (AMZN) or Google owner Alphabet (GOOGL) when they went public.

Competitors are also excited about the Coinbase list.

“The debut of Coinbase is a really important event in the maturation of the cryptographic industry. It has created a strong business and the market believes it,” said Steve Ehrlich, CEO of Travel Digital (VYGVF), a cryptocurrency broker. “That’s just the beginning.”