Posted on 02/21/2021 5:44:08 PM PST by amorphous
Deep-pocketed investors appear hungry for Coinbase equity ahead of the crypto exchange's long-awaited direct listing.
As per data compiled by The Block, the average clearing price for shares on Nasdaq Private Market continues to tick higher since the first secondary sale four weeks ago. The most recent cleared price was $373 a share, which would imply a valuation of about $100 billion.
That's an increase from the first average cleared price of $200 in January, according to data shared with The Block.
Nasdaq enables secondary offerings for Coinbase stock, a process that allows ex-employees and investors of the crypto exchange to sell their shares.
The secondaries start Monday morning and end Thursday afternoon each week. The auctioning and clearing process happens after the close and results are posted Friday morning. The identities of the bidders are not clear at this time, but a source said that they are likely large investment firms.
Sizable resting bids came in over the course of the most recent secondary offering. To be clear, buyers don't need to pre-fund their account and can bid at whatever price they want. Data from the top of the order book shows two large multi-million dollar bids at $350 and $450 a share.
It's not clear which of these bids were filled (typically about 100,000 shares match per secondary).
When compared to its traditional equity peers, the Coinbase valuation is absolutely staggering, as its $100BN valuation represents a 132X Fwd EBITDA multiple compared to a 17.8x average for its peer group.
Chart in millions of dollars:
According to Axios, the $100BN price tag means that Coinbase could go public at a higher initial valuation than any other U.S. tech company since Facebook.
https://www.zerohedge.com/crypto/coinbase-valued-100-billion-more-cme-ice-cboe-and-nasdaq
Worst customer service ever. Their platform is fine. But lord knows if something goes wrong you are screwed.
If they are going to be publicly traded, they gotta get their act together.
They are being brought public by a SPAC.
I’m gonna buy me some Coinbase. A well-diversified portfolio really should include some Coinbase. And some guy told me the other day that Coinbase has a lot of upside potential.
By the way, what is Coinbase? Does it make coins or baseball bases, or anything like that? And what is the company’s P/E ratio?
Wait...I don’t think you’re supposed to ask questions about the fundamentals any more.
(j/k)
Placemarker
I’ve put $500-$600 into smaller coins and my account is now at $1350-$1500. I have yet to see a coin with cumulative annual negative growth.
> I’ve put $500-$600 into smaller coins and my account is now at $1350-$1500. I have yet to see a coin with cumulative annual negative growth. <
Interesting. And that’s why I’ll never be rich enough to go sailing with John Kerry. I just can’t wrap my head around this stuff. It’s too much like buying tulip bulbs on spec.
Some day I might be proven right. But I suspect that day is far away. In the meantime there will be money to be made, as you noted.
Is this likebitcoin and can you buy it on ameritrade
Gamestop was trading at $500 a few weeks ago. Traded at $38.50 on Friday. The valuations mentioned here are pure fantasy. Amateur hour exchange, accounts get hacked, servers freeze on heavy volume, easy for professional entities to compete with serious exchanges, account screwups take days/weeks to fix.
Have to diversify and only put in what you can afford to lose.
You don’t have to buy whole Bitcoins you can buy fractions.
Bitcoin and Etherum and then some altcoins and let it ride.
Which SPAC?
Yeah, lots of issues today with purchases—transactions being rejected for no reason related to the bank.
I’ve used them for years for crypto transactions. What have you used?
>In the meantime there will be money to be made, as you noted.
The best part is to get in before the whales and mass public starts getting in on it. It’s still seen as shady and financial firms are doing everything they can to say it’s fake money, but since the value itself is based on fake fiat money, the argument falls flat.
Wait until some genius buys a billion dollars worth of gold and then starts coining out a limited amount of crypto based on real gold. He’ll be dead within a week.
For a non stock market guy, this whole thing is incomprehensible. One buys Bit Coin or this Coinbase stuff, where does the money go, is there anything tangible backing the investment?
It’s not publicly traded yet. But these early trades are giving some indication of how it is likely to be valued when it does go public. At these valuations it will be several times the size of the company that manages the NYSE.
Coinbase is the largest and best known bitcoin/cryptocurrency exchange for the US. There are a plethora of other exchanges, but this is the one many people start with.
Just remember: Not your keys, not your coins. Unless you are near to trading as asset, it should not be kept on an exchange.
I’ve used them for years, and fortunately haven’t had to use customer service. I’ve had to use customer service with other exchanges. It usually involve email communications. I’ve never lost a penny with any, but my son took a hit when Mt. Gox went bankrupt.
Go do a google search. You need to understand how it works. You are not going to learn that on FR. most of the folks around here don’t have a clue.
I have been using them since 2013. Almost weekly. Never an issue. My email got hacked a couple of weeks ago. Then my phone. So I had them “deactivate” the account so I could verify my identity before reactivating. It should be a simple procedure. You cannot “call in”. You have to do it all be email.
The proble is they are so overwhelmed they have no staff.
I built customer service for web banking for a major retail bank. They are not training their people. What their staff does is send out the same few messages in response. Then they force you to have to write back. Then they close the case. Only when you re-enter a case does it get escalated.
The result is that they are forcing themselves to wade through 5 to 7 times the case load. If they had enough agents to handle this load, these issues would be easy to fix.
The biggest problem is the influx of customers who have no idea what they are doing...operating in a system that makes sense to geeks, but no real customers.
On the other hand management has delusions of being the investment bank for Bitcoin. They have dollar signs in their eyes. And that is where their focus lies.
The company has a chance to be the AMAzon or Apple of this space. But they need to bring in people who know what to do to facilitate large scale growth issues.
I wish them luck. They are foundering in some rough seas.
Sounds like they need to hire a consultant like yourself, alright. At least they’re in the US. Another exchange I use, HitBTC, is in Chile. There are quite a number to choose from.
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