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Coinbase valuation on Nasdaq could hit $100bn

By Dan Moore

08:22, 14 April 2021

Cryptocurrency exchange Coinbase

Coinbase, the Californian cryptocurrency exchange that is to float on the Nasdaq later today, could achieve a valuation of $100bn soon after launch. 

A valuation of $100bn, which is predicted by many on Wall Street, would make Coinbase bigger than several US exchanges, including CME, ICE and CBOE.

A realistic valuation for Coinbase?

The new exchange, which will go public under the symbol COIN, was given a reference price by the Nasdaq of $250 a share on Tuesday evening, which values it at more than $65bn.

Despite the more conservative valuation pinned on Coinbase by the Nasdaq, ever-growing interest and excitement in cryptocurrencies suggests a higher valuation by the close of play. Certainly, the $63,000 record high attained by Bitcoin, and Coinbase’s recent trajectory, have not gone unnoticed.

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Massive first quarter growth

The listing of Coinbase, which last week reported its revenue rocketed by 847% in the first quarter to $1.8bn, looks set to appeal to investors who either don’t want to hold cryptocurrencies themselves, or cannot due to regulatory restrictions.

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2,990.12 Price
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Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

Coinbase primarily provides opportunities for those looking to invest in Bitcoin and Ethereum, the two biggest cryptocurrencies in the world. These have risen in value 800% and 1,300% respectively over the past year, a further testament to the mammoth attraction of this type of investment.

Greater regulatory scrutiny inevitable

Nigel Green, CEO and founder of deVere Group, welcomed the Coinbase listing. He called it a “truly momentous day for the cryptoverse”. But Green also added a word of caution: “With these astronomical price jumps, and as they become increasingly embedded in the global financial system, and, critically, as the direct listing on the Nasdaq will reach a wider investment base other than the usual crypto evangelists, investors must expect much greater government scrutiny.

“Governments, central banks and regulators will be keen to protect the currency status quo. We should expect considerably higher levels of regulation in the crypto market. Indeed, I believe it is inevitable.”

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Read more: Coinbase IPO: another way for investors to profit from the crypto boom?

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