Bitcoin gets boosted amid Coinbase listing

Bitcoin gets boosted amid Coinbase listing

Bitcoin touched US$64,000 high for the first time yesterday, as investors turned their attention to Coinbase Global Inc.’s public debut.

Cryptocurrency exchange Coinbase makes a highly anticipated stock market debut on Nasdaq today amid frenzied interest in bitcoin and other virtual currencies despite concerns about a bubble.

The first company devoted entirely to cryptocurrency to enter the US stock exchange, listed under the symbol COIN, is already a heavyweight.

The Nasdaq set a reference price for the company at US$250 per share, which, after taking into account the shares in circulation, stock options, and restricted shares, would put Coinbase’s overall valuation at US$65.3 billion.

The direct listing of the biggest US crypto exchange is seen pushing tokens even more into the mainstream of investing, exposing legions of potential buyers to the digital asset class that has grown into a US$2 trillion industry in little more than a decade.

Should Coinbase reach a US$100 billion market cap, it would be worth more than the New York Stock Exchange and Nasdaq Stock Market combined. 

Bitcoin soared to a 120% rally since December as mainstream acceptance of cryptocurrencies grew, as well as lifting other tokens to record highs. 

It has risen for seven straight sessions, its longest winning streak since the start of the year. Ether, the second-largest cryptocurrency, also climbed to a record. 

Damon Harrison
Market Analyst, IPG Group