Coinbase shares close at $328.28, valuing the company at $85.78B, down from its open of $381; Nasdaq listed shares at $250 before Wednesday's open

- Coinbase's market cap exceeded $100 billion after its debut Wednesday morning on the Nasdaq, though the stock fell later in the day.

CNBC 2021-04-15 Ari Levy

Context & Ripple Effects

Coinbase entered its Nasdaq direct listing after private shares had indicated a roughly $90B valuation at $350, while Nasdaq set a $250 reference price that implied $65.3B. The $328.28 close places the first public benchmark below the recent private-market share indication but well above Nasdaq’s reference level.

First-order effects

Coinbase finishes its debut with an $85.78B public valuation, giving public investors and existing holders a liquid market price rather than a private-sale estimate.
Nasdaq’s $250 reference price is validated as a starting point rather than a ceiling, even as the shares retreat from their $381 opening trade.

Second-order effects

The close below the recent $350 private-share price resets expectations for secondary-market holders: public demand, not pre-listing indications, now determines Coinbase’s valuation.
Coinbase’s reported results and crypto-market conditions gain a direct transmission channel into its valuation; later coverage tied a sharp share decline to weaker revenue and trading volume.

Third-order effects

Coinbase’s direct listing moves the company into a continuously repriced public-market regime, a shift illustrated by its later fall to $12.98B and eventual move back above the $250 reference price amid a bitcoin rally.

The trend: Crypto-company valuations are moving from occasional private transactions to public prices that reset with operating performance and crypto-market cycles.

Discussion

@fehrsam Fred Ehrsam on x
When @brian_armstrong and I started @coinbase in 2012, a #bitcoin was worth $6 and only known by a few nerds on the internet. #bitcoin was the crazy idea that the world could have a digital money for everyone. @coinbase had one mission: to make crypto easy to use.
@coinbase @coinbase on x
Today is a big milestone for Coinbase and an even bigger milestone for crypto. Thank you to our employees and customers for getting us here. Together, we can build the cryptoeconomy and create economic freedom for all. Join us for today's events at https://www.coinbase.com/... $C…
@coinbase @coinbase on x
On 03/Jan/2009, Satoshi coded a message into the Bitcoin Genesis Block. As a nod to Satoshi on our listing day, we asked @f2pool_official to embed a message in the Bitcoin blockchain: https://blockchair.com/...
@brian_armstrong Brian Armstrong on x
1/ Today is a big moment for @coinbase as we become a public company. But it's also a big one for crypto. This all started with the Bitcoin whitepaper 12 years ago, a deceptively simple 9 page document by Satoshi Nakamoto that ignited a global movement. https://bitcoin.org/...
@felixsalmon Felix Salmon on x
+2,979.82% https://twitter.com/...
@brian_armstrong Brian Armstrong on x
Tomorrow on @coinbase's public listing day, @pmarca will be interviewing myself, Coinbase co-founder @FEhrsam, and Coinbase President & COO @emiliemc on YouTube Live. What questions would you like @pmarca to ask us? Thx!
@fehrsam Fred Ehrsam on x
Over time, crypto grew, and so did the company. A simple #Bitcoin wallet evolved into individual and institutional products to support a blossoming cryptoeconomy. 2 nerds who met on the internet (yes, @brian_armstrong and I met on @reddit) turned into a company of 1000+.
@cnbci @cnbci on x
“This technology is here to stay, it's creating a lot of value in the world and people no longer need to be scared of it,” said @brian_armstrong, ceo and co-founder of @coinbase, as he discussed the company's Nasdaq debut. https://www.cnbc.com/... https://twitter.com/...
@nas Nasir Jones on x
Long crypto forever.... in sickness & in health
@balajis @balajis on x
Binance is a phenomenal company, as are Kraken, ShapeShift, Blockchain, and the rest of the veterans in the space. Tomorrow is Coinbase's day but I am looking forward to everyone's success. A rising coin lifts all boats! https://twitter.com/...
@jeffjohnroberts Jeff Roberts on x
Well played @coinbase. The message echoes the concern Satoshi wrote in Bitcoin's genesis block about government spending. This is what Coinbase inscribed: “NYTimes 10/Mar/2021 House Gives Final Approval to Biden's $1.9T Pandemic Relief BillMine' https://twitter.com/...
@fehrsam Fred Ehrsam on x
Beginnings were not glamorous. @coinbase launched out of a two bedroom apartment we shared with another company.
@rosannacooney Rosanna Cooney on x
Coinbase's Irish staff in line for $45 million of share options when the company lists next week. 🤑🤑 https://www.businesspost.ie/ ...
@iamchrisani Chris Ani on x
Crypto brought coinbase mainstream not coinbase bringing crypto mainstream Just saying https://twitter.com/...
@brian_armstrong Brian Armstrong on x
3/ This has driven me ever since as I believe creating more economic freedom is one of the biggest meta problems of our time. It has so many positive downstream effects in society. https://blog.coinbase.com/...
@brian_armstrong Brian Armstrong on x
6/ It's hard to overstate how bad of an idea everyone thought Coinbase was. Friends in tech said they didn't get it or that it was a scam. I had a lot of self doubt personally, and thought maybe I was crazy for being so interested in it.
@erikvoorhees Erik Voorhees on x
Cheers to you guys @FEhrsam @brian_armstrong and the whole @coinbase team. Monumental accomplishment. Thank you for believing when so few did, and more importantly, for executing when so few could. #bitcoin https://twitter.com/...
@brian_armstrong Brian Armstrong on x
2/ The Coinbase journey started when I read the Satoshi whitepaper while I was home for Thanksgiving in 2010. As I read it, I realized that crypto had the power to unlock a future where economic freedom was a reality for everyone.
@olivercameron Oliver Cameron on x
The @coinbase IPO represents why I moved to Silicon Valley 11 years ago. A handful of people (@garrytan, @rsg, @alexisohanian, @ycombinator) placed a bet on a tiny and divisive startup. Countless other divisive startups will now benefit, and the Silicon Valley magic continues.
@davidrgoldberg @davidrgoldberg on x
Did early @coinbase investors do well? Why is nobody talking about this?
@bittrexexchange Bittrex on x
Congratulations to @Coinbase and @Brian_armstrong! Here's to advancing the future of blockchain. 🎉 $COIN https://twitter.com/...
@brian_armstrong Brian Armstrong on x
5/ After reading it, I started coding an early prototype of Coinbase on nights and weekends, and began attending early bitcoin meetups around the Bay Area. Eventually I was accepted at @YCombinator and got the courage to quit my job @Airbnb to go pursue this crazy idea.
@brian_armstrong Brian Armstrong on x
4/ While the Coinbase app has evolved a lot since then (It was first called Bitbank until I learned that “bank” carries a very specific legal, regulatory definition!), the mission is the same: to increase economic freedom in the world.
@ycombinator Y Combinator on x
“Draper first heard about Coinbase during Y Combinator's Summer 2012 Demo Day. [...] Of the roughly 75 companies presenting that day, two or three companies stood out to him. Coinbase made that short list.” https://www.newcomer.co/...
@bigblackjacobin Edward Ongweso Jr on x
oof https://twitter.com/...
@bigblackjacobin Edward Ongweso Jr on x
look at that line baby https://twitter.com/...
@rolfewinkler Rolfe Winkler on x
What investors first paid for Coinbase, now trading at $420 per share $0.15: @initialized / @garrytan $0.20: @usv / @fredwilson; @ribbitcapital / @nshalek, @mickymalka $1.00: @A16Z / @cdixon $2.76: @dfjgrowth / @BSchuler $8.25: @ivp / @tomloverro $23: @paradigm / @matthuang
@rsg Bobby Goodlatte on x
I first met @brian_armstrong, @FEhrsam & Olaf when Coinbase was more or less 3 of them in an 2 bedroom apartment on Bluxome St. 8+ yrs later @Coinbase is about to be one of the biggest tech listings in US history. What an honor to have been along for the ride so far. Onwards 🚀
@hshaban Hamza Shaban on x
As Coinbase debuts, Powell calls cryptocurrencies “vehicles for speculation” https://www.cnbc.com/...
@kr00ney Kate Rooney on x
Some $COIN stats from @CNBC data team At the session high ($429.54) COIN's market cap was $112.2B. That's a casual market cap gain of $12.7B from its opening level of about $99.6B. THAT market cap gain is bigger than the CBOE's total market cap ($11B) 🤯
@hannolustig Hanno Lustig on x
Coinbase earned 0.54% on all the crypto-currency trades on its platform. If real currency markets were this inefficient, global banks would earn $32 billion per day ($ 6 trillion daily vol in FX markets according to BIS) just on FX trades.
@thestalwart Joe Weisenthal on x
$COIN just fell below $400. Can't say I'm surprised. I've been calling crypto a bubble for almost a decade.
@pmarca Marc Andreessen on x
Join me at 10AM Pacific time for a live conversation about @coinbase's public listing with co-founders @brian_armstrong, @FEhrsam along with Coinbase President and COO @emiliemc, here! https://www.coinbase.com/...
@felixsalmon Felix Salmon on x
Looks like Coinbase equity has slightly underperformed bitcoin since founding. https://twitter.com/...
@levynews Ari Levy on x
Coinbase indicated opening now right around $375 The highest private market trade was $375.01 That's $97.99 market cap bln fully diluted
@levynews Ari Levy on x
Also, your regular direct listing reminder There's no pop from the $250 reference price. No shares were sold at that price. The open is the first trade. If there's a pop, it's from that price.
@caseynewton Casey Newton on x
Welcome to Taking Credit for Coinbase Day on Twitter. What did you do to help Coinbase get to this point? Please leave an absolute lie in the replies. Let's complicate the narrative
@adamdraper Adam Draper on x
I used a breakthrough diligence method with the @coinbase investment. Read closely to see: @EricNewcomer https://twitter.com/... https://twitter.com/...
@ericnewcomer Eric Newcomer on x
a 2011 article in @TheEconomist titled “The bursting of the Bitcoin bubble” made @AdamDraper a fortune on Coinbase https://www.newcomer.co/... https://twitter.com/...
@ericnewcomer Eric Newcomer on x
How @AdamDraper & @garrytan, two of Coinbase's earliest investors, struck crypto gold. https://www.newcomer.co/...
@cdixon Chris Dixon on x
Congratulations to Brian, Fred, and the entire Coinbase team on building an iconic company and bringing crypto mainstream. An amazing journey, and just getting started. https://twitter.com/...
@eringriffith Erin Griffith on x
naturally, coinbase's deal toy is printed on the blockchain https://twitter.com/...
@tomgara Tom Gara on x
“Coinbase wasn't nearly the hottest company in YC's Summer 2012 batch. TechCrunch writers...were more excited about Vastrm, which was described as a “Warby Parker for shirts.” https://www.newcomer.co/...
@joshelman @joshelman on x
Today as everyone is celebrating Coinbase's public listing, I want to do a special shout out to @emiliemc . She led strategy and corporate development at LinkedIn for many years acquiring many great companies and making it a powerhouse.
@eladgil Elad Gil on x
One small step for Coinbase... One giant leap for crypto-kind Congratulations @brian_armstrong @FEhrsam @coinbase team!!! 🚀 https://t.co/M88jIGq1sT
@paulg Paul Graham on x
Coinbase, Instacart, and Zapier were all in the same YC batch: summer 2012. I was curious what reporters said about it at the time. Tomio Geron's top two picks were Instacart and Coinbase! https://www.forbes.com/...
@cnbctechcheck TechCheck on x
Coinbase will have a hard time finding competitors, says @dickc. The cryptocurrency exchange is set to go public Wednesday. “Cybersecurity and banking is a ridiculous investment and crypto is an even bigger investment.” https://www.cnbc.com/... https://twitter.com/...
@ericbolling @ericbolling on x
Big IPO tomorrow: Coinbase the cryptocurrency mega-exchange goes public in a cool “direct listing” under the symbol COIN. No investment banks 👊, the reference price is $250. Watch this one folks- should be worth $100b soon: $coin #Bitcoin @elonmusk https://www.cnbc.com/...
@paulg Paul Graham on x
I missed the first part of summer 2012's Demo Day, because the new software I'd written for investors to express interest in startups was commingled with HN, which misinterpreted the sudden burst of clicks from investors as a DoS attack and shut off the local IP address.
@arca @arca on x
“While @coinbase needs #Bitcoin a lot more than Bitcoin needs Coinbase, it's not surprising to see #BTC run ahead of what will likely be the most talked about event on #WallStreet tomorrow.” @arca CIO @jdorman81 - https://www.forbes.com/... #DigitalAssets #IPO

Chronicles