Los Angeles (CoinChapter) – Major United States-based crypto exchange Coinbase (COIN) has received a reference price of just $250 ahead of Wednesday’s Nasdaq direct listing.
The price is well below the current pre-trading price of $600. It reflects past transactions but also was set in conjunction with Coinbase’s financial advisors.
Another reason why the reference price is much lower than the pre-trading price is because “COIN has not had recent sustained trading in a private placement market.”
However, the reference price in this case is not a direct indicator of the company’s market cap. Because Coinbase went public via a direct listing instead of an initial public offering (IPO).
Rather, the price implies a valuation of $65 billion. Which is below other estimates ranging between $68 billion and $120 billion.
Nonetheless, this is the first significant direct listing on the Nasdaq. Across the five significant direct listings that have taken place on the New York Stock Exchange. The opening price was on average about 37% above the reference price.
Coinbase stock price could open above $340
If this trend continues, Coinbase’s opening price would open above $340, with a valuation of around $90 billion. The price could surge even higher as the company’s pre-listing contract CBSE is currently trading around $600 on the FTX exchange.
This represents a 140% premium above the reference price. Furthermore, the company could benefit from a strong Q1 2021 financial statement. Coinbase raked in $1.8 billion in revenue, increasing its net revenue by $800 million — up from $32 million this time last year.
Coinbase surprises full-time employees with free shares
Leading up to Wednesday’s launch, Coinbase surprised nearly 1,700 full-time employees by giving them 100 free shares each. At the current reference price, that would equate to $25,000.
Coinbase will allow the employees to immediately sell the shares if they choose. The company did something similar in the past, handing out 105,510 share options to employees of Coinbase’s Irish branch.