NASDAQ is getting ready to start trading Coinbase shares . . .
By early afternoon, Coinbase shares should be trading with the ticker symbol COIN.
Coinbase is doing a direct listing. That means there are NO IPO shares available. And everyone must simply wait for the opening trade.
Coinbase (NASDAQ: COIN) and NASDAQ have set an IPO reference price of $250 for Coinbase shares.
That price suggests that the entire company would be valued at $65 billion.
Coinbase is the leading cryptocurrency exchange. The company allows individuals and institutions to buy and sell cryptos including Bitcoin, Ethereum and Litecoin. And it benefits from the rapid growth of the $2 trillion crypto market.
Coinbase shares are expected to trade well above $250 when the stock opens. The opening price will be based upon demand from investors. And therefore, the stock could trade more than 50% above the official reference price.
Recent Pre-IPO trading in Coinbase indicates a share price of around $325 – $350 per share.
That would take the company’s value above $100 billion, potentially making the nine-year-old cryptocurrency exchange more valuable than Blackstone (NYSE: BX), Goldman Sachs (NYSE: GS) or American Express (NYSE: AXP).
The stock market opened at 9:30 a.m. Eastern Time. However, it can take several hours for market makers at the NASDAQ to determine the opening price.
Coinbase shares should begin trading around 1 p.m. ET.
Coinbase Scores $600 Share Price Targets
The big Wall Street firms haven’t released price targets on Coinbase.
Yet some smaller research and investment firms are releasing targets – before the IPO.
Delphi Digital says the stock should trade at 15 – 20-times forward sales. On that basis, the firm thinks the company is worth $172 billion to $230 billion. That translates into a price target of around $520 per share.
Yet that isn’t the highest price target . . .
Coinbase stock gets a $600 share price target from analysts at MoffettNathanson.
“We view Coinbase as a leading technology infrastructure provider for the cryptocurrency ecosystem, providing essential building blocks to facilitate the use of cryptocurrencies, including market-leading crypto storage and exchange capabilities,” according to the report.
Coinbase is clearly a leveraged bet on the price of cryptocurrencies – and the size of the market. If crypto prices continue to rise and the market expands, Coinbase could deliver outsized gains.
In a few hours we’ll have more details on how investors are valuing Coinbase.
The biggest winners today will be Coinbase Pre-IPO investors – seeing 1,091% profits in six months.
Now, you’ve probably missed out on the Coinbase Pre-IPO.
That’s why I’m not going to chase Coinbase shares at above $300. And instead, I’m scooping up an alternative crypto exchange BEFORE it goes public.
Yours in Wealth,