Coinbase’s whipsaw debut takes it above US$112 billion and then slips as trading spills into Bitcoin rally

Name: Chinese police seize 4,000 bitcoin-mining computers that illegally tapped US$3 million worth of electricity
Uploaded: 2021-04-15T01:51:48.000Z
Duration: 1 min 7 s
Description: Chinese police seize 4,000 bitcoin-mining computers that illegally tapped US$3 million worth of electricity

Coinbase shares closed at US$328.28 on Nasdaq, after rising as high as US$429.54 as its market value swung by US$26 billion on debut

Bitcoin, which along with Ethereum made up 56 per cent of Coinbase’s 2020 trading revenue, dipped below US$62,000 after surging to an all-time high.

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Monitors display Coinbase signage during the companys initial public offering (IPO) at the Nasdaq MarketSite in New York on April 14, 2021. Photo: Bloomberg

Bloomberg

Published: 9:51am, 15 Apr 2021Updated: 9:53am, 15 Apr 2021

Cryptocurrency exchange Coinbase Global soared above a US$112 billionvaluation in its trading debut Wednesday, then suffered a US$26 billion sell-off as bitcoin fell from record highs and tech stocks on Nasdaq fell across the board.

The massive valuation, which dwarfs more traditional financial companies including Intercontinental Exchange Group and Nasdaq itself, is a landmark moment for the cryptocurrency industry and for Coinbase, which was started almost a decade ago when few people had even heard of bitcoin, and many exchanges were run by amateurs from their garages and homes.

Coinbase shares closed at US$328.28, a 14 per cent decline from the US$381 opening price on Nasdaq. They earlier climbed as high as US$429.54. At the closing price, the company’s valuation on a fully diluted basis is about US$86 billion.

Bitcoin, which along with Ethereum made up 56 per cent of Coinbase’s 2020 trading revenue, dipped below US$62,000 after earlier surging to an all-time high.

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Chinese police seize 4,000 bitcoin-mining computers that illegally tapped US$3 million worth of electricity

The trading debut isn’t just a mark of success for Coinbase, which was valued at just US$8 billion in its most recent funding round in 2018. It’s also a win for Nasdaq, which hosted its first direct listing after beating out the New York Stock Exchange (NYSE) for Coinbase’s debut. Coinbase is the biggest company to take the direct listing route to market.