The capitalization of the Bitcoin exchange Coinbase on the Nasdaq Private Market before the start of trading in shares in the main section of the stock market amounted to $ 90 billion, Bloomberg writes about this .
As a result of the final auction on March 4, the securities closed at $ 350.
This was the last opportunity for investors to buy Coinbase shares ahead of the expected direct listing at the end of March, according to sources . In February, at the moment, quotes rose to $ 375, which implies the capitalization of the bitcoin exchange at $ 100 billion .
“Pre-trading” on the Nasdaq Private Market may affect the assessment of the range of shares offering, although they are not fully representative due to low liquidity.
Coinbase will host the first major direct listing on the Nasdaq. Prior to that, well-known startups like Spotify, Slack and Palantir Technologies preferred the New York Stock Exchange (NYSE) to this site. The procedure does not involve raising additional capital.
If the market successfully confirms such a high valuation of Coinbase, its founder Brian Armstrong will be able to earn an additional $ 3.2 billion. In August 2020, he received 9.3 million options (3.8% of the share capital) to buy shares at a price of $ 23.49. This is how the board of directors estimated their fair value at that time.
The Coinbase founder can count on over $ 3 billion in revenue if the weighted average share price over 60 days is between $ 200 and $ 400.
In the most optimistic outcome, Armstrong will have the right to exercise all 9.3 million options. He will be able to earn the equivalent of $ 1 million for each work day he gives to the company over the next ten years, as long as these options are in effect. For reference, the 2020 Coinbase founder’s remuneration is estimated at $ 59.47 million.
Recall, according to the S-1 form filed with the US Securities and Exchange Commission , Armstrong owns 2.8 million class A shares and 36.8 million class B shares. According to the Bloomberg Billionaires Index , their value is estimated at $ 15 billion.
In the Hurun ranking , the head of Coinbase took the first line among crypto billionaires at the end of 2020. He became a leader in a similar rating for Forbes .