Just another Wednesday in the wild world of crypto! Coinbase shares were the talking point all week, what with the biggest cryptocurrency exchange in the United States getting a historic direct listing.
There were a million different thoughts on how its shares would fare.
Even Nasdaq floated a number.
The stock exchange assigned a $250 reference point price on Tuesday evening, though the shares were already changing hands much higher privately.
But no doubting the fact that they would meet the same volatility that the crypto space is infamous for. Traders were expected to scramble to assess the value of the US based cryptocurrency exchange in a volatile day following the historic direct listing.
Long story short, they started off at $381, and at one time they traded above $400, and then dipped down into the low $300s.
After opening at around 1:30 pm ET, Coinbase shares soared to as high as $429.54, before dropping more than 100 points over the next hour and a half to close at $328. This clearly was below the $348 price where the shares last changed hands in private markets.
Even with the dizzying drop, Coinbase would have a valuation of about $65 billion at a share price of $328, assuming 199.2 million shares outstanding. Using the fully diluted share count of 261.3 million, the implied market capitalization would be about $86 billion.
Based on the higher share count, Coinbase had achieved a valuation over $100 billion.
As for the volatility, there was bound to be a lot of it. That is just the nature of such huge technology coming into existence. Plus, the fact that most of the investors are already warm to the idea, having had exposure to cryptocurrencies.
On the first day of trading, then, COIN closed down 14% from its opening price.
The day, well and truly, went as expected!
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