As of mid-morning, the stock was indicated to open at $350. That would value Coinbase at $91.5 billion.
“When it comes to Coinbase, this is pretty much the crypto event of the year,” said Jean-Marie Mognetti, CEO of CoinShares, a European digital asset manager whose stock recently began trading on the Nasdaq Nordic exchange. “It shows that bitcoin is for everyone.”
And that will also turn Coinbase CEO Brian Armstrong into a mega-billionaire. At a price of $350 a share, his 39.6 million shares will be worth just under $14 billion.
Ehtereum, the second most valuable cryptocurrency, has nearly tripled thanks in part to the fact that it is the digital payment of choice used in transactions for non-fungible tokens, or NFTs.
“The Coinbase listing should bring further attention to cryptocurrencies and will help further legitimize it,” said Rachid Ajaja, CEO of AllianceBlock, a blockchain capital markets firm. “You also have more and more financial institutions coming into crypto.”
That’s why one early Coinbase investor said that even if the stock surges during its first few days, it still might be a good buy.
“Would we be Coinbase investors at a valuation of $100 billion? Yes,” said Matthew Le Merle, managing partner of Fifth Era & Blockchain Coinvestors, a fund of funds that invested in Coinbase after a venture financing round that valued the company at $8 billion a few years ago.
Competitors are excited about the Coinbase listing as well.