Coinbase Takes off on Wall Street
Carried by the rise of bitcoin, Coinbase takes off on Wall Street
With a capitalization of 86 billion dollars for its first day on the stock market, the company specializing in cryptocurrencies broke the record set by Facebook in 2012 (81 billion).
A little less than ten years after its creation, the American cryptocurrency specialist, Coinbase, has just joined Wall Street, and its performance is stratospheric. For its first day in the temple of “traditional” finance, Brian Armstrong’s company, whose stock gained 31% (to $ 328), hit $ 86 billion in capitalization on Wednesday and broke the record for the best IPO for an American company which had been owned since 2012 by a certain … Facebook (81 billion). How to explain such a valuation? Is this justified?
What is Coinbase?
Coinbase is a company that allows, among other things, individuals and businesses to buy and sell cryptocurrencies, including bitcoin, ether and a dozen other digital assets. The Californian company was founded in 2012 by Brian Armstrong, a former Airbnb employee, often compared to Mark Zuckerberg, and not just because the two men are almost the same age: 36 for the founder of Facebook and 38 for that. from Coinbase. Armstrong already claims a little more than 50 million customers in a hundred countries … Like Zuckerberg, he wants to revolutionize his sector, that of finance.
Why is the company worth so much?
The capitalization of Coinbase, which joined the Nasdaq via a direct listing (without issuing new shares) is giddy. No company since Facebook in 2012 ($ 104 billion) had reached such a level on its first day on the stock market. At 86 billion dollars, the company, which has “only” 1,700 employees, is worth more than any bank on the European continent and more than the New York Stock Exchanges (NYSE and Nasdaq) combined …