By
Bena Ilyas
April 22nd, 2024
Coinbase is said to be valued at around $65.3 billion on a fully diluted basis with a reference price of $250.
Nasdaq has given the largest US exchange Coinbase a reference price of $250 per share ahead of its planned direct public offering (DPO). When Coinbase shares become available for trading on the 14th of April as expected, traders will need a gauge to guide the trading. Nasdaq announced the gauge, also the reference price for Coinbase on the 13th of April.
Coinbase is planning a direct listing on Nasdaq, under the symbol “COIN.” The exchange is planning to go public through a DPO on the 14th of April. Other companies that have gone public through a DPO include Slack Technologies (NYSE: WORK) and Palantir Technologies (NYSE: PLTR). Others are Spotify Technology SA (NYSE: SPOT), Asana Inc (NYSE: ASAN), and Roblox Corp (NYSE: RBLX). Coinbase listing will be the first significant direct listing on Nasdaq as other companies that went public through DPOs opted for the New York Stock Exchange (NYSE). Also, Coinbase will become the first major crypto platform to go public in the US.
Upon a successful DPO and if Coinbase reaches a $100 billion market cap, the exchange will be among the 85 most valuable companies in the US.
Nasdaq Sets Coinbase Reference Price
According to a CNBC report, Coinbase will be valued at around $65.3 billion on a fully diluted basis with a reference price of $250. The report added that the reference price signifies Coinbase’s past transactions and input from investment bankers. CNBC noted that the reference price does not indicate where the stock will begin trading on the 14th. The average opening prices of other companies that have debuted in the market through direct listings were 37% above the reference prices.
If Coinbase also opens with a 37% increase over its reference price, the trading price would be around $343. This would be nearly the average price of Coinbase shares traded on Nasdaq’s private market last month at $343.58.
James Friedman, the senior fintech research analyst at Susquehanna International Group, commented on Coinbase’s reference price. Friedman said that the reference price would affect the value the 114,800 Class A shares bring to Coinbase’s treasury.
The analyst mentioned the possibility of Coinbase trading below the reference price:
“There’s a lot more to the creation of public equity than its first day of trading. Square stock went down to $8 not long after trading because that lost the Starbucks account… now they’re above $200.”
Square Inc (NYSE: SQ) is currently at after-hours trading of $273.41, a 0.07% gain over its previous close of $273.23.
Coinbase has seen increases in its value over the past year as Bitcoin and Ethereum also recorded new record levels. Bitcoin has grown more than 100% since the beginning of the year and has reached multiple all-time highs in the same period. At press time, Bitcoin is up 5.63% to $63,907.