The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
The cryptocurrency trading platform known as Coinbase began trading publicly through a direct listing on Wednesday. It sold pretty high, entirely above its reference price.
Bitcoin (CRYPTO: BTC) is currently listed with a price exceeding $64,000, which created huge anticipation for Coinbase’s first listing. It had an opening price of $381 and was evaluated at about $100 billion. That share price was more than 50% above its reference price and continued climbing from their in initial trading.
Coinbase is the largest cryptocurrency exchange platform in the U.S. It has over 56 million users and operates in more than 100 countries. It currently holds over $220 billion dollars in assets on its platform. Cryptocurrency retail investors make 95% of its transaction revenue, so it is not surprising that the platform’s debut went so well.
So what happens next? Coinbase released its preliminary first-quarter results ahead of the public listing. It also published its 2021 forecast.
The company revealed that the quarter’s revenue increased nine times since the previous year to $1.8 billion dollars. Coinbase also announced that their net income was going to be between $730 million and $800 million, compared to the measly $32 million the year prior.
Bitcoin purchases represent a big chunk of transactions made on Coinbase’s systems. The firm mentioned that trading volume and transaction revenue are bound to fluctuate with Bitcoin and other cryptocurrencies.
Investors are evaluating the stock, taking into account the $100 billion dollar evaluation and the future of cryptocurrency, to see whether or not they make it a part of their portfolio.