Coinbase reference price set at $250 per share ahead of Nasdaq debut By Reuters

© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin and U.S. dollar banknotes are seen in this picture illustration

By Echo Wang

NEW YORK (Reuters) – Nasdaq on Tuesday set a reference price of $250 per share for Coinbase Global Inc, projecting a value for the largest U.S. cryptocurrency exchange at $49.19 billion ahead of its landmark stock market debut on Wednesday.

The reference price is not an offering price for investors to purchase shares, but rather a benchmark for performance when the stock starts trading the exchange on Wednesday.

Coinbase shares are set to start trading under the “COIN” symbol. The opening public price will be determined by buy and sell orders collected by the Nasdaq from broker-dealers.

The reference price is below the $343.58 volume-weighted average price Coinbase’s shares were trading at privately in the first quarter of this year.

If shares trade hands at or above the reference price, Coinbase would be valued at more than six times the $8 billion the company was worth in its last private fundraising round in 2018.

By comparison, the market capitalization of New York Stock Exchange-parent company Intercontinental Exchange (NYSE:) is around $66 billion.

Coinbase has opted to go public through a direct listing rather than a traditional initial public offering. This means the company will not raise any money and existing investors are not bound by lock-up restrictions on when they can divest their holdings following the market debut.

The option to go public is much less common than a traditional IPO but is gaining traction. Previous high-profile direct listings include Spotify Technology SA (NYSE:) in 2018, Slack Technologies (NYSE:) Inc in 2019 and Roblox Corp in 2021.

Founded in 2012, Coinbase is one of the best-known cryptocurrency platforms globally and has more than 56 million users who trade various virtual coins, including bitcoin, ethereum and .

hit a record of $62,741 on Tuesday, extending its 2021 rally to new heights a day before the Coinbase listing.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*