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Bitcoin

Coinbase Sets Direct Listing For April 14 (bloomberg.com) 17

Coinbase, the largest U.S. cryptocurrency exchange, said it's planning to make its trading debut on April 14. Bloomberg reports: The company's registration statement for the listing has been declared effective by the U.S. Securities and Exchange Commission, Coinbase said Thursday in a statement confirming a Bloomberg News report. The direct listing on the Nasdaq Stock Market had earlier been pushed back from March, Bloomberg previously reported. As with other direct listings, a reference price to help guide investors and to allow the shares to begin trading will be disclosed the night before the company goes public, said people familiar with the matter, who asked not to be identified because the information was private.

Coinbase is planning to go public through a direct listing in which it will not raise any new capital, it said in previous filings. It was valued at about $90 billion in its final week of trading on Nasdaq's private market, Bloomberg News reported. The debut will be the first major direct listing to take place on the Nasdaq. All such previous listings were on the New York Stock Exchange, including those by Spotify Technology SA, Slack Technologies Inc., Asana Inc., Palantir Technologies Inc. and Roblox Corp.

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Coinbase Sets Direct Listing For April 14

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  • by SuperKendall ( 25149 ) on Thursday April 01, 2021 @09:26PM (#61226862)

    I've been thinking for a whilem that coinable must be really profitable.

    If you think about it, they are a fantastic bet - if Bitcoin goes up, a lot of people will be buying. If Bitcoin tanks as some predict, there will be a flood of people dumping - either way Coinbase will get a cut of a lot of that action from smaller investors.

    Combine that with a pretty usable interface, decent security for a consumer service, and I think they could be kind of a valuable company... though I think probably like most IPO's, too risky/expensive for me at launch to go for in terms of P/E. But I think a lot of investors may do well there.

    • From my understanding, bitcoin hasn't had $90 billion change hands yet. And Coinbase is valued at $90 billion? At 2020 numbers, they are trading at a modest 180x EBITDA.

      Keep in mind, Coinbase gets a percentage. If Bitcoin drops by 50%, then Coinbase's revenues do to.

      • Keep in mind, Coinbase gets a percentage. If Bitcoin drops by 50%, then Coinbase's revenues do to.

        Sure, but more likely is that bitcoin oscillates, and Coinbase is making money as it goes up, and as it goes down, back and forth...

        At 2020 numbers, they are trading at a modest 180x EBITDA.

        I agree that seems like kind of an insane number, like I said I'm not investing, I just think that Coinbase has a pretty good case for making money and maybe in the end that actually will not unreasonable.

      • by Anonymous Coward

        At 2020 numbers, they are trading at a modest 180x EBITDA.

        Does this mean they have a P/E of $343.58 / $1.40 = 245.4 ?

        https://www.sec.gov/Archives/edgar/data/0001679788/000162828021005373/coinbaseglobalincs-1a2.htm

        No public market for our Class A common stock currently exists. However, our shares of Class A common stock and Class B common stock (on an as-converted basis) have a history of trading in private transactions. Based on information available to us, the low and high sales price per share of Class A common stock and Class B common stock (on an as-converted

        • I looked at their current valuations (~90 MMM) and their 2020 EBIDTA ( ~$500 MM). Then I did the math. I believe the P/E ratio takes into account IDTA, which accounts for the much higher P/E compared to P/EBITDA ratio.
      • by Anonymous Coward
        What makes you think $90B in Bitcoin transactions hasn't happened yet? Volume of Bitcoin transactions on coinmarketcap.com shows over $60B in the last 24 hours alone, though these are crypto-to-crypto transactions over tracked exchanges, not coinbase numbers. But I'm curious what your understanding is.
      • by tlhIngan ( 30335 )

        Keep in mind, Coinbase gets a percentage. If Bitcoin drops by 50%, then Coinbase's revenues do to.

        No, coinbase makes money exchanging currency, by adjusting the exchange rate such that they make money on every transaction.

        They will buy bitcoin at a certain rate (BTC-->USD), and will sell bitcoin at a different rate (USD-->BTC). Their rate to buy a bitcoin will be higher than it's "exchange rate" - you will be paid less USD per BTC - they pocket the difference as profit. And they will sell you BTC at

  • It’s a sign of the times when a cryptocurrency story on Slashdot takes over 15 hours to barely accumulate as many replies, and any political ones gather 5-30 times as many posts in under an hour.

The explanation requiring the fewest assumptions is the most likely to be correct. -- William of Occam

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