Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
The Coinbase direct listing opens at $250 per share, which means that all the company’s 1,700 full-time employees will become $25,000 richer.
Today is a big day for Coinbase Inc: it is going public via a direct listing on Nasdaq. Amid the event, Coinbase decided to give all of its 1,700 full-time employees 100 shares, each worth $250 ahead of its listing. As a result, the majority of Coinbase shareholders will consist of its staff members.
Notably, the give-away does not apply to part-time employees and contractors who perform lower-level jobs. However, they don’t mind, as the company has always been generous to them. A prime example of how Coinbase treats its employees is awarding new members with Restricted Stock Units (RSU).
It is not only US employees who will get the award. On Sunday, Ireland’s Business Post wrote about the handout of Coinbase shares to employees of its Irish wing.
The Coinbase listing opens at $250 per share, which means that all the company’s full-time employees will become $25,000 richer. And later, the price of the shares will change. Analysts agree that it will be higher.
What to Expect from Coinbase Listing?
Instead of going public via an Initial Public Offering (IPO), Coinbase preferred to make its shares publicly available via conducting a direct listing. According to Coinbase SEC filing, at least 114.9 million shares will be available for sale directly to the public at the price of $250. Its Class A common stocks will begin trading on the Nasdaq Global Select Market under the ticker symbol COIN.
Obviously, following the listing, Coinbase’s valuation will grow. As of March 2021, Coinbase’s valuation peaked at $68 billion, now estimated to be worth around $100 billion, according to outlet Axios.
Analysts expect the Coinbase DPO to give the cryptocurrency market increased validation.
Wedbush analyst Dan Ives stated:
“The Coinbase IPO is potentially a watershed event for the crypto industry and will be something the Street will be laser-focused on to gauge investor appetite. Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of Bitcoin and crypto for the coming years.”
There are also disputes about the impact the listing will have on the future of Bitcoin (BTC). On Tuesday, just a day before the event, Bitcoin hit a new record high. It was trading at $62,700 in the morning. Today, it has even surpassed this mark. At the moment of writing, Bitcoin is trading at $64,461.
Many analysts and some major funds have high targets for Bitcoin. For instance, Ark Investment believes the entire Bitcoin market capitalization could “comfortably eclipse” that of gold, surpassing $10 trillion. As a new report by JPMorgan Chase & Co (NYSE: JPM) indicates, the growing interest of institutional investors in BTC will also stimulate its growth. Besides, the launch of Bitcoin exchange-traded funds (ETF) in the United States will be a key in normalizing the Bitcoin futures market.