Countdown to Coinbase's listing: market value may hit $90 billion


Coinbase will use direct listing (DPO) to log in to U.S. stocks, which has been a major event in the cryptocurrency world recently. As the largest cryptocurrency exchange in the United States, Coinbase's every move can affect people's hearts.

At the end of last month, it began to open the trading of private equity shares on the Nasdaq secondary market. According to people familiar with the matter, the price of the private equity was settled at $303 per share last week, giving the company a valuation of $77 billion, which is larger than the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE). The current market value of the Intercontinental Exchange is approximately $63.35 billion.

According to a person familiar with the matter: "The first week of Coinbase opening up private equity trading, the settlement price was 200 US dollars per share; the second week was 301 US dollars per share; the third week, last Friday, the settlement price reached 303 dollars."

And it also revealed that when Coinbase went public, there were approximately 254 million shares in circulation and available for trading. Coinbase currently refuses to respond to this.

Nasdaq Private Market (Nasdaq Private Market) is a "pre-IPO private equity trading market" launched by Nasdaq and SharesPost. It allows unlisted companies to raise funds and trade equity through the platform, allowing current or Former employees have the opportunity to sell their shares before Coinbase goes public.

Coinbase officials did not specify the reasons for choosing to do so, but Nasdaq Private Market’s services before the company’s IPO included one of the services for the company’s Pre-IPO companies that "want to raise secondary capital through shareholders and investors." Provide a controllable liquidity plan.

The top cryptocurrency derivatives exchange FTX launched the Coinbase (stock code: CBSE) Pre-IPO contract at the end of December last year, splitting 250 million shares, and the price has risen from $120 in less than two months. To 370 US dollars, an increase of about 208%.

According to FTX data calculations, Coinbase's current valuation may exceed US$90 billion.

You should know that the traditional IPO pricing is the price of new stocks before they enter the market. Under the circumstances of "asymmetric information" or "incomplete information", it is quite difficult to accurately price the IPO price. With this in mind, FTX's Pre-IPO products can actually be used as reference pricing for IPOs of real stocks. In this way, FTX's Pre-IPO contracts become the "secondary prediction market" of the stock exchange.

However, this is only an ideal situation. The current trading volume of the FTX exchange is still far below that of the Nasdaq Stock Exchange, so there will still be price differences. However, judging from the previous Airbnb contract (stock code: ABNB), the highest price of ABNB before the IPO was US$155. Although there is a gap with the US$165 after the IPO, it still proves that its listing price is higher than 68 per share at the time. The selling price in US dollars.


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