The market capitalization of the Coinbase bitcoin exchange on Nasdaq Private Market ahead of the start of trading of shares in the main market stood at $90 billion. Bloomberg reports Bloomberg.
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The securities closed at $350 at the conclusion of the final auction on March 4.
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According to sources, this was the last opportunity for investors to buy Coinbase shares before the anticipated direct listing. In February, quotes briefly rose to $375, implying a market capitalization for the bitcoin exchange around $100 billion.
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Pre-market trading on Nasdaq Private Market may affect the valuation of the pricing range, although it is not fully representative due to low liquidity.
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Coinbase will conduct the first major direct listing on Nasdaq. Previously, notable startups such as Spotify, Slack and Palantir Technologies preferred this venue to the New York Stock Exchange (NYSE). The procedure does not involve raising additional capital.
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If markets fully validate such a high valuation, Coinbase founder Brian Armstrong could earn an additional $3.2 billion. In August 2020, he received 9.3 million options (3.8% of equity) to purchase shares at $23.49. The board valued their fair value at the time.
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The Coinbase founder could earn more than $3 billion if the 60-day trailing average share price sits between $200 and $400.
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In the most optimistic scenario, Armstrong would be entitled to exercise all 9.3 million options. He would earn the equivalent of $1 million for each business day he dedicates to the company over the next ten years while these options remain in effect. For reference, the founder’s compensation in 2020 was estimated at $59.47 million.
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According to the S-1 form filed with the U.S. Securities and Exchange Commission, Armstrong owns 2.8 million Class A shares and 36.8 million Class B shares. According to Bloomberg Billionaires Index, their value is estimated at $15 billion.
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In Hurun’s ranking, the Coinbase chief topped the top spot on the crypto billionaire list for 2020. He also led Forbes’ equivalent ranking.
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