COIN
Coinbase IPO or, more precisely, direct listing is the most anticipated financial event this week.
Unlike with a traditional IPO, there is no pre-pricing ahead of the direct listing so trading might be very volatile in the first week.
The reference price of $250 would give Coinbase a valuation of $65 billion.
That’s about the market cap of the New York Stock Exchange, which has comparable revenues ($1.67 billion in Q4 vs $1.8 billion in Q1 for Coinbase) but lower net income ($528mn vs $800mn).
Unlike NYSE or Nasdaq, Coinbase saw rapid growth: the revenue increased by 208% compared to the previous quarter while income surged 347%.
The media widely cited a possible $100 billion valuation for Coinbase so we’ve posted the following question to Hybrid Intelligence:
“Nasdaq gave Coinbase a reference price of $250 a share on Wednesday ahead of its planned direct listing. Will Coinbase shares trade above $400 (+60%) at any time before April 24?”
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Assurance: 71%
This is a mildly bullish sign. Typically traders view HI indicators that are above 70% as “very likely” so that’s just at about the threshold.
Whatever the outcome of the first week’s trading, Coinbase listing will have major effects on the whole crypto market. So stay tuned to our channel!