Market Cap of $85.7 Billion... Surpasses Parent Company of New York Stock Exchange
"Decisive Moment for Cryptocurrency"
[Asia Economy New York=Special Correspondent Baek Jong-min] Coinbase, the largest cryptocurrency exchange in the United States, made a spectacular debut on the stock market as expected. Coinbase instantly surpassed the New York Stock Exchange, the epitome of capital markets, in terms of market capitalization, demonstrating the high interest in cryptocurrencies. Cryptocurrency investors have anticipated this listing to be a historic milestone marking the entry of cryptocurrencies into Wall Street's mainstream financial market.
An employee of Coinbase is holding a bottle of champagne in one hand and taking a photo of the large Coinbase logo displayed on the Nasdaq market building's giant electronic billboard. [Photo by AP Yonhap News]
Coinbase, which directly listed on the Nasdaq market on the 14th (local time), started trading at $381, far exceeding the reference price of $250. Unlike typical listings, Coinbase chose a direct listing instead of an initial public offering (IPO). Since the company’s value was not evaluated during an IPO process, there was great interest in the opening price.
During the trading session, Coinbase’s price soared to $429 but later declined due to increased selling pressure, closing at $328. The closing price rose 31% compared to the reference price. The price difference between the intraday high and low reached $119, showing high volatility similar to Bitcoin.
Based on the opening price, Coinbase’s market capitalization was $99.6 billion on a fully diluted basis, considering stock options and restricted shares. During the session, it joined the $100 billion club, but the closing market capitalization was $85.7 billion.
Coinbase’s corporate value instantly surpassed existing major exchanges. The market capitalization of Nasdaq, where Coinbase is listed, is $26 billion, and the market capitalization of ICE, the parent company of the New York Stock Exchange (NYSE), is only $66.5 billion.
Reflecting expectations for Coinbase’s listing, Bitcoin, which had reached an all-time high, recorded an intraday high in the $64,000 range before falling back to around $61,800. Companies invested in Bitcoin such as Tesla, Square, and MicroStrategy all fell simultaneously due to the exposure effect. It is interpreted that Federal Reserve Chairman Jerome Powell’s remark that "cryptocurrencies are really speculative instruments and are not actively used as a means of payment" had some influence.
This listing is expected to be recorded as a new turning point in the history of cryptocurrencies. Brian Armstrong, CEO of Coinbase, predicted in an interview with CNBC that "Coinbase’s listing will be a decisive moment for cryptocurrencies." On the day, many people gathered around the Nasdaq market in Manhattan, New York, trying to capture the large electronic billboard commemorating Coinbase’s listing.
The New York Times (NYT) reported that the sharp rise in Coinbase’s stock price reflects investors’ interest in the cryptocurrency market. Even without directly buying cryptocurrencies, purchasing Coinbase shares can provide an indirect investment effect.
Coinbase is also showing strong performance due to a surge in transactions driven by rising cryptocurrency prices. It is estimated to have recorded $1.8 billion in revenue and $800 million in net profit in the first quarter.
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