The company’s debut was a strategized move achieved by a direct listing instead of the most commonly used route of IPO listing. This symbolizes a supplementary breakthrough towards the success of Bitcoin and many other cryptocurrencies.
The stock initially was dealing at around $414 per share. The company’s shares were being dealt in private until March 2021, along with a volume-loaded average price of $343.58. However, it closed at $328.28, which gives Coinbase a valuation estimate of $85.8 Billion and a market cap of $65.4 Billion.
Coinbase was founded in 2012, with a singular aim of being an efficient, approachable and forthright financial network accredited by crypto. The organization possesses 56 Million consumers spread across more than 100 countries globally and has an estimated $223-billion worth of assets on its platform backed by the world’s leading investors. In March 2021, it was regarded as the most substantial cryptocurrency exchange in the US by its trading volume in the market.
Ark Invest Purchases Coinbase Shares after Selling Part Ownership in Tesla
The founder of Ark Invest – Cathie Wood bought a large number of shares of Coinbase valued at $246 Million shortly after its launch in the stock exchange. As per the summary of their daily fund trading, the investment management firm sold a few Tesla shares to acquire $168 million of Coinbase shares. The Tesla shares worth was estimated at around $178 Million.
Additionally, Ark Fintech also sold a few shares of Intercontinental Exchange to gain the stakes in Coinbase. If compared to Intercontinental Exchange which is owned by New York Stock Exchange, Coinbase has a market value of nearly $66 Billion.
This strategic decision has been made almost a few weeks after Ms. Wood had stated that Tesla has the potential to reach a share price of $3000 by the year 2025. This investment in Coinbase offers Ark a more ancillary outlook towards Bitcoin adding to their investment in Tesla, which recently invested $1.5 Billion in Bitcoin and has accepted Bitcoin as a mode of payment for its cars. Ark had gained prominence in 2019 amid retail investors and succeeded in attracting huge financial gains in its volatile funds.
The crypto bull market has been partially accredited to a welcoming approach from recognized companies like Tesla and Mastercard.