A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."
With the introduction of the options market, Coinbase shareholders anticipate the stock to revamp from last week’s dump.
Coinbase Global Inc (NASDAQ: COIN) stock yesterday closed trading at $333.00, down 2.63%. Meanwhile, COIN stock was trading approximately 0.54% down during the after-hours trading session according to MarketWatch. Notably, Coinbase stock was listed on the Nasdaq exchange last week and has since seen its volatility push the prices down. During the first day of trading, COIN stock traded between $429.54 and $310. However, the bullish sentiments indicate an imminent breakout as more investors move to buy them. Barely a week after the listing, Coinbase options are expected to begin trading on Nasdaq today according to the company’s representative.
The launch of the COIN options market at Nasdaq is expected to offer new ways for investors to get exposed to the company’s stock market.
Having debuted at a $100 billion market capitalization, the value has since depreciated to around $64.29 billion at the time of reporting according to metrics provided by MarketWatch. Notably, there are approximately 130.7 million outstanding COIN shares with an average volume of $30.98 million.
Coinbase Stock Ahead of Options Trading Start
Since Coinbase opted to go for a direct listing instead of the traditional IPO, existing shareholders had to sell their share for the trading to begin. According to the Securities and Exchange Commission (SEC) filings, Brian Armstrong the company’s founder and CEO sold approximately 749,999 shares in three batches. Reportedly, Armstrong sold at a price range between $381 to $410.40, hence raising a total of up to $291,827,966.
Besides, the company’s insiders sold 12,965,079 COIN shares worth over $4.6 billion at $344.38 per share according to Friday’s close. As an appreciation to their input, Coinbase awarded each of its 1700 employees 100 company shares. Another notable seller was Coinbase CFO Alesia Haas who sold 255,500 shares at $388.73. Despite selling a portion of their shareholdings, they still possess a significant amount of COIN shares. Reportedly, both Armstrong and Haas only sold approximately 10% of their company’s stock.
With the introduction of the options market, Coinbase shareholders anticipate the stock to revamp from last week’s dump. According to a survey conducted by MarketWatch, COIN stock received an average of Buy rating from five ratings.
From a technical point of view, COIN stocks are currently resting at critical support formed last week. If the buyers take charge from the current level, COIN stock could rally further to the new ATH. However, if the insiders and the company continue to sell more shares to the secondary market, COIN stock could be headed to a further dip.