When Coinbase, the largest U.S.
cryptocurrency exchange, announced its long-awaited public offering, it did so with a valuation of $68 billion. That’s more than eight times the company’s last private valuation and makes Coinbase one of the most valuable companies to ever come out of Silicon Valley.
Now that Coinbase is public, investors are wondering what the Coinbase IPO price will be. The answer is complicated and depends on a number of factors, including the overall market conditions at the time of the IPO, investor demand for the stock, and the number of shares offered by Coinbase.
Coinbase plans to offer approximately 115 million shares in its IPO, which is set to price between $343 and $345 per share. At the midpoint of that range, Coinbase would have a market capitalization of $39.
Coinbase’s IPO comes at a time when interest in cryptocurrencies is skyrocketing. Bitcoin, the largest cryptocurrency by market value, has surged more than 400% over the last year, while Ethereum, the second-largest cryptocurrency, is up more than 3,000%.
The rally has been driven by a number of factors, including increasing institutional interest, growing mainstream adoption, and macroeconomic factors such as quantitative easing from central banks around the world.
Investor demand for Coinbase’s stock is likely to be high given the recent surge in cryptocurrency prices and the growing interest from institutional investors. The company is also one of the few profitable tech unicorns, with revenue of $1.
8 billion in 2020 and net income of $322 million.
The overall market conditions at the time of Coinbase’s IPO will also play a role in determining the final price per share. If stock markets are volatile or declining at the time of Coinbase’s IPO, it could impact investor demand and lead to a lower price per share.
However, if stock markets are strong or rising at the time of Coinbase’s IPO, it could lead to a higher price per share.
The final price per share will also be determined by how many shares Coinbase plans to sell in its IPO. The company has not yet announced how many shares it plans to sell, but if it plans to sell a large number of shares, it could have a negative impact on the price per share as investors may believe there is greater supply than demand.
Based on all of these factors, it is difficult to predict what Coinbase’s IPO price will be. However, given investor demand for the stock and recent trends in cryptocurrency prices, it is possible that Coinbase could see a surge in its stock price when it begins trading on April 14th.