The cryptocurrency giant Coinbase Global Inc. it is preparing for what investors expect to be a stock market debut, although doubts remain about its high valuation.
Coinbase is scheduled to go public on Wednesday through a direct listing on the Nasdaq stock market. The company, which manages the largest U.S. exchange of bitcoins and other digital currencies, could achieve a larger market capitalization than any of the world’s traditional exchange operators. But it faces a number of threats, including competition in the rapidly evolving cryptocurrency industry, which could undermine its stock price in the long run.
According to Coinbase’s share price in private market trading earlier this year, the company has a total value of $ 91.5 billion, fully diluted, according to the securities presentations. And Coinbase achieved that rating even before the first quarter results were released, when it benefited from a huge rise in the price of bitcoin.
During the first three months of 2021, Coinbase attracted 13 million new users and estimated to generate profits of $ 730 million to $ 800 million with revenue of $ 1.8 billion. Even at the lower end of that profit range, it’s more than double its profit over the past year.