The U.S. crypto exchange giant Coinbase recently submitted a draft registration with the Securities Exchange Commission confirming rumored plans to go public with an IPO that analysts estimate could be worth as much as $28 billion. Coinbase announced that it filed a draft registration statement with the SEC, paving the way for plans for an eventual initial public offering. The announcement comes as interest in bitcoin and other cryptocurrencies has soared to new highs during the coronavirus pandemic.
Coinbase’s value is expected to be around $28 billion.
The researcher at Messari Crypto, Mira Christanto, has taken a deep dive into some of the crypto exchange’s business and trading figures and arrived at a potential valuation of $28 billion. Mirar Christanio stated, “following Coinbase’s IPO announcement, we value the company at $28 billion. Coinbase is one of the most prominent exchanges with $1 billion daily volume in Dec-20.” The researcher added that the model used to derive the valuation split the firm’s business segments by trading fees, custody fees, debit cards, and other criteria. The trading volume primarily comes from institutional clients, she added, but the average holdings per client are $703.
Bitcoin continues to hit all-time highs.
The price of bitcoin is at its all-time highs after the leading cryptocurrency soared above the $20,000 barrier on Wednesday for the first time in its history. At the time of writing, bitcoin is changing hands at just above $23,000. There are several factors that helped bitcoin boost to new all-time highs. Institutional interest in bitcoin has increased its year as a hedge against traditional assets. MicroStrategy, Bitwise, and Grayscale are all surging in terms of investments, assets under management, and share prices for their funds as Bitcoin hit a record price peak this week.
