Given the floor debut of the US crypto exchange Coinbase, many investors are already scratching their feet. Here you can find out what you need to know about the IPO, where the share is tradable and whether it is worth buying.
It’s getting hot: Today is the day. Hardly any other security was eagerly awaited as that of the young company from San Francisco. Now, after months of waiting, Coinbase is finally going public on the US tech exchange NASDAQ (Trade code: COIN). With this, Coinbase enters the glorious halls of Apple, Amazon, Google, Microsoft and Facebook.
Strictly speaking, the floor debut is not an Initial Public Offering (IPO), but a Direct Public Offering (DPO). Both IPOs differ from one another in certain key areas. A key difference lies, for example, in the holding period for existing shareholders. While an IPO stipulates a holding period of up to six months, there is no holding period for a DPO. That means the stock price could fall again shortly after the DPO if shareholders want to realize quick profits.
While an exact issue price has not yet been set, Coinbase announced in mid-March that the average price of its pre-sold shares was $ 343.58. This could also result in an initial concrete company value of around 68 billion US dollars. Experts estimate these key figures even higher. Accordingly, a valuation of 100 billion US dollars and more cannot be ruled out. The current crypto bullrun should also have a positive impact on the estimates.
The extremely positive business figures for the first quarter of 2021 also support the latter assumption. With a turnover of 1.8 billion US dollars and a net profit between 730 and 800 million US dollars, sales of Coinbase grew by a full 208 percent compared to the fourth quarter of 2020, while net profit even quadrupled.
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Coinbase share: pros and cons
In his Friday comment, BTC-ECHO editor-in-chief Sven Wagenknecht explained the pros and cons of the share in detail.
On the Per page are above all the developments from Coinbase to the “Universal Financial Institution” to call. The product range is constantly evolving and new offers can ensure ever larger sales. In addition, Coinbase can now benefit from being listed on NASDAQ Cash inflows of the very large funds and pension funds benefit. Also the User numbers the crypto exchange grow. As the largest and best-known crypto broker in the USA, Coinbase should continue to benefit enormously from the market growth. In addition, is Coinbase profitableThe last quarterly figures show that. Last but not least, the Service for institutional investors Make Coinbase a kind of “crypto house bank” for large investors.
On the Contra side Wagenknecht sees them above all Rating from Coinbasethat the rating is euphoric and consequently the potential for disappointment is correspondingly high. In addition, they sleep competitor Not. Other crypto financial service providers are also positioning themselves in the market and doing everything they can to gain market share. As a result, the trading platform will also be forced to lower fees in the future, which will increase the Decrease profit margin would. In addition, it is still unexplained regulatory situation a problem for Coinbase. The Kypto exchange is very dependent on the goodwill of politics and the SEC. Finally be decentralized financial applications also a construction site that the central trading platform will have to face in the long term.
Every investor will have to decide for himself whether an investment in the share is worthwhile. With its IPO, Coinbase definitely has the potential to make one of the floor debuts of the year. The financial world is looking spellbound to New York and eagerly awaits the ringing of the stock market bell.