Image credits: Coinbase
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Weekly Roundups

Coinbase Hits US$86 Billion Valuation

By MBN Staff | Thu, 04/15/2021 - 11:00

Cryptocurrency fever is far from over. On Wednesday, cryptocurrency platform Coinbase debuted on the stock market and hit a valuation of nearly US$86 billion. That morning, the company's shares opened at US$381 but fell 14 percent from the opening price to close at US$328.28. At one point, Coinbase's market capitalization surpassed US$100 billion.

“Today is a big milestone for Coinbase and an even bigger milestone for crypto. Thank you to our employees and customers for getting us here. Together, we can build the crypto economy and create economic freedom for all”, wrote the company yesterday on its Twitter account. 

However, analysts noted, this valuation will not last long. “The correlation to bitcoin will be very high after the stock stabilizes following its listing,” said Larry Cermak, Director of Research at cryptocurrency website The Block. “When the price of bitcoin goes down, it is inevitable that Coinbase's revenue, and inherently the price of the stock, will decline as well.” Coinbase recently reported preliminary results for 1Q21, with revenue rising to US$1.8 billion. This amount is about nine times higher than the amount reported for the same period in 2020. Currently, the platform has 56 million users.

According to Bloomberg data, Bitcoin, the world's largest and best-known cryptocurrency, hit a record high of more than US$64,000 on Wednesday and its value has doubled this year.

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Photo by:   Coinbase
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