COIN, the ticker symbol of the class A stock of cryptocurrency exchange, Coinbase, has received a reference price of $250 from Nasdaq. COIN stock will make a trading debut on 14 April.
According to a notice issued by Nasdaq, the $250 price is only for reference and the opening public price of COIN stock will be determined on the basis of the total buying and selling orders of the stock. Based on the reference price, COIN stock has a valuation of nearly $66 billion, assuming an estimated 266 million shares outstanding.
“As a Direct Listing, COIN stock will be in a regulatory halt until Nasdaq opens trading pursuant to the procedures described in Rules 4120(c)(8) and (9) and 4753. Because COIN has not had recent sustained trading in a private placement market, Nasdaq is required to determine the price to use for purposes of Rule 4753(a)(3)(A)(iv)(b) and 4753(b)(2)(D)(ii). That reference price is $250.00. Please note that the reference price is NOT an offering price, and nobody has purchased or sold shares at that price. The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq,” the announcement states.
In addition to the debut of COIN stock, Coinbase saw consistent growth in 2021. The US-based cryptocurrency exchange recently reported its financial results for the first quarter of 2021. Coinbase reported total revenue of approximately $1.8 billion during the first three months of 2021 with record trading volumes of $335 billion.
Coinbase is one of the largest digital exchanges in the world. The company has seen significant growth in recent years amid a surge in the price of digital currencies. The exchange mentioned in the latest announcement that total digital assets on its platform reached $223 billion, which is around 11% of the total market cap of digital currencies. In January 2021, Coinbase revealed that the company is planning to go public through a direct listing. The company’s class A stock received a ticker symbol of COIN. According to market analysts, COIN stock will debut on Nasdaq at a price much higher than the reference price due to massive demand.