The COIN share of the major US exchange Coinbase received a reference price of USD 250 from Nasdaq before the eagerly anticipated direct listing on the exchange takes place in a few hours.
The price is well below the current FTX pre-trade price of USD 600, albeit with a low 24-hour volume of under USD 4 million.
The exchange is listed on the stock exchange via a direct listing rather than an initial public offering, which means that the reference price is not a direct indicator of the company’s market capitalization. That just implies a valuation of $ 65 billion, which is between $ 68 billion and $ 120 billion among other estimates.
The Nasdaq announcement stated that the reference price, which reflects previous transactions but was set in consultation with Coinbase’s financial advisors, was created due to the fact that “COIN has not had sustained trading in a private placement market recently.”
The reference price does not reflect the opening price, the announcement made it clear:
“Please note that the reference price is NOT an offer price and that no one has bought or sold shares at this price. The opening price is determined on the basis of buy and sell orders in the opening auction on the Nasdaq. “
This is the first significant direct listing on the Nasdaq. According to CNBC, the five major direct listings on the New York Stock Exchange – Spotify, Slack, Palantir, Asana and Roblox – opened an average of 37% above the reference price. Following this trend, Coinbase’s opening price at a valuation of around $ 90 billion would be above $ 340.
The trading price could go even higher as the Coinbase pre-listing contract CBSE is currently trading around $ 600 on the FTX exchange, which is a premium of 140% above the reference price. Another indicator of a strong first day was the year-end closing for the first quarter of 2021, which was targeted for a revenue increase to $ 1.8 billion, meaning net income of up to $ 800 million, an increase of 32 Million US dollars in the same period last year.
In the run-up to the Nasdaq listing, Coinbase surprised all 1,700 full-time employees with 100 shares each worth $ 25,000 at the current reference price. The March 25th thank you is a no-obligation scholarship that means they can sell it right away after the listing is posted tomorrow.
These shares are in addition to the 105,510 stock options issued to employees of the Irish Coinbase arm in recent years.