United States’ largest cryptocurrency exchange company, Coinbase Global on Wednesday said that recent private market transactions had valued the company at around $68 billion this year ahead of a planned stock market listing.
The striking valuation underscores how the perceived value of Coinbase has rallied in lockstep with the surge in the price of Bitcoin.
In a regulatory filing, Coinbase said its shares in the private market traded at a weighted average price of $343.58 per share in the first quarter of 2021 through March 15, up from $28.83 per share in the third quarter ended September 30.
That represents a nearly 13-fold jump in its valuation in the space of a few months. According to data platform PitchBook, Coinbase was valued at a shade over $8 billion during its last private fundraise in October 2018.
A successful listing by Coinbase, whose business is primarily focused on digital currencies, would represent a landmark victory for cryptocurrency advocates vying for endorsement for a sector that has struggled to win the trust of mainstream investors, regulators and the general public.
It could also be seen as a tacit regulatory approval of assets traded on Coinbase’s platform. The company has more than 43 million users in more than 100 countries.
Coinbase did not indicate in the latest filing if it had received approval from regulators that would allow it to trade cryptocurrencies that have been classified as securities in the US.
In December 2020, the company confidentially submitted paperwork with the US Securities and Exchange Commission to go public.
Coinbase is planning to go public through a direct listing rather than a traditional initial public offering. This means the company is not selling any shares in advance of its market debut, as is the case with initial public offerings (IPOs).