Coinbase is going public today
it has a $250 "reference price" for its direct listing which would value the company at around $65 billion fully diluted
but it's likely going to start trading much much higher than that
here's why
it has a $250 "reference price" for its direct listing which would value the company at around $65 billion fully diluted
but it's likely going to start trading much much higher than that
here's why
The reference price is just that, a reference
it's provided by the Nasdaq and is reflective of Coinbase's most recent trades in the private market
it's provided by the Nasdaq and is reflective of Coinbase's most recent trades in the private market
But it is NOT reflective of where the stock will begin trading
for example other prominent direct listings like Spotify, Slack, Palantir, Asana, and Roblox opened an average of 37% above their reference prices
for example other prominent direct listings like Spotify, Slack, Palantir, Asana, and Roblox opened an average of 37% above their reference prices
The reference price is also a bit of a PR play for both Nasdaq and Coinbase
Expect to see lots of "Coinbase Starts Trading X% Above Reference Price" headlines today if Coinbase pops
Expect to see lots of "Coinbase Starts Trading X% Above Reference Price" headlines today if Coinbase pops
So ahead of Coinbase's debut, keep in mind that the "$250/share" and "$65 billion" numbers you are seeing will likely end up being much higher by day's end
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