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Coinbase Valuation Climbs $100+ Billion in Secondary Share Sale

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by Bhushan Akolkar · 2 min read
Coinbase Valuation Climbs $100+ Billion in Secondary Share Sale
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Last Friday, Coinbase sold its recent batch of 127,000 shares at $373 putting the company’s valuation above $100 billion. 

As per the latest report from Axios Capital, Coinbase valuation stood above $100 billion ahead of its direct listing. As per the publication, the most recent batch of Coinbase shares attracted a price of $373 per share.

This happens just four days after Coinbase attracted valuations of $77 billion with its share trading at $300 per piece. So, as it happened, Coinbase initiated its secondary share sale through the Nasdaq Private Markets. Also, through its secondary market offering, Coinbase decided to release a total of $1.8 million shares on weekly basis.

This exercise was to basically help Coinbase determine a reference point for its public offering. Coinbase announced its plan to launch its own Initial Public Offering (IPO) in a filing with the US SEC last month in January 2021.

The world’s biggest crypto exchange sold its initial batch of 75,000 shares on January 29, at $200 per share. This fetched the company an initial valuation of $54 billion. This was significantly higher in comparison to Coinbase’s $8 billion valuations in late 2018.

The next two batches of shares released by Coinbase sold at $301 and $303 respectively. Last Friday, Coinbase sold its recent batch of 127,000 shares at $373 putting the company valuations above $100 billion.

Quick Growth of Coinbase Valuation

As Coinbase has been working hard enough to launch its IPO. If the IPO happens around $100 billion valuations, this will help Coinbase to go public “at a higher initial valuation than any other U.S. tech company since Facebook”.

Commanding just $8 billion valuations in late 2018, Coinbase has registered significant growth in the last 36 months. As Axios reports, in the full year ending 2019, Coinbase reported a net loss of $30 million with $530 million in revenue. However, during the last year of 2020, Coinbase generated $141 million in net income with its reported revenue of $691 million.

This shows the company’s strong growth over the last year. Also, the global macroeconomic conditions led by the COVID-19 crisis helped Coinbase attain a huge scale in a short time. In its filing with the SEC, Coinbase writes:

“We believe a direct listing more closely follows the ethos of crypto and Coinbase because it democratizes access and opportunities for all investors.”

It will be interesting to see what valuation does Coinbase command going ahead.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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