Coinbase’s market value falls short of expectations. Bitcoin price falls from highs
The cryptocurrency buying and selling platform starts trading on Nasdaq with a valuation of $ 90 billion, below the estimated $ 100 billion.
Bitcoin escalated in 2020 and continues to appreciate in 2021. Will it behave as a safe haven asset?
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Coinbase, one of the largest cryptocurrency buying and selling platforms, is expected to start trading on the stock exchange with a value of US $ 340 per share, which gives it a market value of US $ 90 billion, taking into account the shares that the company has traded.
This market valuation falls short of the 100 billion that was being targeted by Bloomberg, which led to an immediate drop in bitcoin, mirroring what analysts had predicted: the Coinbase exchange variation and bitcoin performance will be linked in the future .
The correlation between both was even described in the prospectus for listing, when the company states that “a large part of the revenue comes from trading bitcoin and ether. If the demand for any of these crypto assets falls and is not offset by new demand for other crypto assets, our business, operating results, and financial conditions could be affected.
Bitcoin was once again renewing historic highs, close to $ 65,000 per unit, but fell back to $ 63,000 again after the initial price of each share of Coinbase has been announced, which may vary in the first few minutes.
The listing on Coinbase – which supports the negotiation of about 90 crypto assets – was not made through the common IPO (Initial Public Offering, in Portuguese translation), but through a Direct Public Offering (DPO). , which means that the company’s current shareholders will not be limited by any lockup period and can sell their shares on the first day of trading.
According to the company’s initial estimates, Coinbase registered 56 million users by March of this year, up from 43 million at the end of 2020, with revenues rising to $ 1.8 billion, nine times more than the 190.6 million registered in the same period last year.
Net income is expected to be between 730 million and 800 million dollars between January and March this year, a year-on-year increase of 2,300% if we consider the average of these two values.
In 2019, the company launched the Coinbase Card – in partnership with Visa – for customers in the United Kingdom and in some European countries, which allows you to buy any merchandise, as long as the store accepts Visa cards, using cryptocurrencies.