Bullish for crypto: Coinbase private sale brings valuation to $90bn

  • In a private sale on Nasdaq, Coinbase shares were sold at a price of $350.
  • The price would bring Coinbase’s valuation to a staggering $90 billion.
  • Several other crypto companies are also seeking public listings.

A private auction of Coinbase shares on Nasdaq has brought the company’s valuation to $90 billion.

According to a report by Bloomberg, sources close to the publication said investors in a Bitcoin Code private auction valued Coinbase shares at $350 each. The private auction on the Nasdaq Private Market ended on 4 March.

Coinbase is one of the most valuable crypto companies on the market. The private sale is usually indicative of the public share price – although it can vary.

This will be the last round of private sales before the exchange goes public. This makes the whole process cheaper, avoids share dilution and is generally a sign of confidence in the company.

In addition, Coinbase investors will not be subject to a share lock-up period

Coinbase announced in January that it would seek a direct listing as opposed to an initial public offering (IPO). The approval of the SEC filing revealed that the stock will be listed as a Class A security under the ticker “COIN”.

Coinbase is one of the most prominent crypto exchanges and its public listing is a milestone for the market. No less than eight other cryptocurrency companies are looking to go public directly.

These include the Gemini exchange, the social trading platform eToro and the mining hardware manufacturer MicroBT.

This is partly due to the massive rally in the crypto market and bitcoin (to buy bitcoins with instant bank transfer guide) last year. Emmanuel Goh, CEO of data aggregator Skew, told Bloomberg that “bellwether companies are already turning a profit”.

The arrival of institutional investment, which has been a major factor in the rally, is also behind the increased interest in Coinbase and other crypto IPOs. Savvy investors hope to capitalise on this increased interest in the crypto market.

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