Cryptocurrency giant Coinbase Global Inc. is preparing for what investors expect to be a blockbuster debut on the stock market, although doubts remain about its high valuation.
Coinbase plans to go public on Wednesday with a direct listing on the Nasdaq. The company, which runs the largest US exchange for bitcoin and other digital currencies, could achieve a higher market capitalization than any of the world’s traditional traders. But it faces a number of threats, including competition in the rapidly evolving cryptocurrency industry, which could undermine its long-term stock price.
Based on the price of Coinbase shares when trading on the private market earlier this year, the company is worth $ 91.5 billion on a completely diluted basis, securities deposits show. Coinbase also reached this rating just before publishing the results of the explosion for the first quarter, when it benefited from a huge rally in the price of bitcoin.
In the first three months of 2021, Coinbase attracted 13 million new users and estimated earnings of $ 730 to $ 800 million, with revenue of $ 1.8 billion. Even at the lower end of that range of earnings, this is more than twice its profit for the whole of last year.