Coinbase is an exchange for cryptocurrencies, allowing users to buy and trade in digital currencies like Bitcoin, Ethereum, Cardano and dozens of other coins.
Coinbase is about to start trading on the Nasdaq and New York Stock Exchanges, with an estimated US$100 Billion valuable. Nasdaq has set a per-share reference price at US$250.
This IPO comes on the back of the recent announcement of Q1 2021 revenue growth, an amazing 1.8B, up from just $585M in Q4 of 2020 and just 191M YoY for Q1 2020 (see below).
If you have done your research and are keen to make an investment in Coinbase, you’ll of course have to decide investing in shares of Coinbase is a better option than buying the Crypto on Coinbase.
As an Australian, you may like to invest in US stocks like Coin and the service Stake can be used to do this.
How to buy shares in Coinbase (COIN)?
On Wednesday’s 14 April (US time), Coinbase (COIN) will complete a direct listing. It is expected that during the session, $COIN will become available to investors.
Here are a few things to keep in mind for those looking to invest.
- Direct Listings
The stock price and value of a company are entirely determined by market supply and demand. Existing shareholders can sell their shares at a price they calculate as fair while traders and investors determine their bid price. The stock initially trades where the bid and the ask meet.
During a traditional IPO, a bank will predetermine the value of a company during the underwriting process. Given direct listings do not feature an underlying predetermined valuation, they can be subject to increased volatility.
- Buying on Stake
Investors will only be able to submit an order for $COIN once it is live. This is often an unknown time after the market opens once the pre-listing auction is complete. While the stock page may be visible on the website and app, no orders can be placed until the stock is officially trading.
More information at Stake.