By
Godfrey Benjamin
April 23rd, 2024
The reported growth of the Coinbase shares is a reflection of the blossoming business of cryptocurrency trading.
Ahead of the public debut of the Coinbase cryptocurrency exchange, a new source has confirmed the worth of the firm’s stock. As reported by Coindesk, the shares of the United States-based company had a settlement price of $303 on the Nasdaq Private Market, according to two sources familiar with the matter.
This current trading price gives Coinbase a valuation of $77 billion, making the company remarkably larger than some well-known Wall Street firms including Ford Motor Company (NYSE: F) and Intercontinental Exchange Inc (NYSE: ICE) amongst others.
“The third weekly transaction closed on Friday and the clearing price was $303 a share,” said a source. “The first week it was 200 bucks a share, the second week it was $301 a share, and the third week it was $303 a share. So you can kind of see price discovery happening.”
The growth of exchanges particularly in the past year has been influenced by the rapid adoption of Bitcoin (BTC) and altcoins by institutional investors. Since the intention to go public was made known, Coinbase has been running an anonymous book order. The deals afford holders of the company’s shares including employees and early investors to cart away with some gains.
The interest shown in the trading of these shares gives a snapshot of the plausible embrace they will receive when they are eventually listed.
“It’s not like a handful of shares being exchanged at $300 a share. Each week it’s tens of millions of dollars, a pretty sizable amount,” said the source.
Coinbase Shares: Chip Off the Block of Emerging Crypto Exchanges
The reported growth of the Coinbase shares is a reflection of the blossoming business of cryptocurrency trading.
While Coinbase is up for public listing, an event that has consistently been ranked as one of the biggest proposed for this year, other exchanges are also seeing impressive growths. Binance, Kraken, Huobi Global, and OKEx are amongst the top trading platforms with synonymous growth in the past years.
A defining momentum to the business growth of Coinbase as well as other exchanges now relies on each platform’s ability to capture as many market whales as retail customers. Both classes of investors are necessary to keep these marketplaces geared up, with a corresponding bid to drive more revenue.
The listing of Coinbase shares on a public market will position the company for more mainstream investors and backers. The fact that the firm will be subjected to more direct regulations by US authorities will also give more investors the confidence to deal with the platform.
In all, the Brian Armstrong-led outfit is up for bigger growth in the near-term, particularly in the highly growth-prone US Initial Public Offering (IPO) market which in some cases is often oversubscribed.