Coinbase IPO Stock Price: COIN rises on Cathie Woods' purchases, shrugging off cryptos' decline

Coinbase IPO launched on Wednesday, April 14.
Bitcoin marks perfect timing with a new record high.
Nasdaq:COIN went public via a direct listing at a $250 reference price.

Ivan Brian FXStreet

Update April 16: Coinbase Global Inc shares have kicked off Friday's trading session on a positive footing, rising over 1% to top $327. While broad markets are on the rise amid a bullish outlook for the US economy, the cryptocurrency exchange is also benefiting from Cathie Woods' investment – Her ARK fund scooped up hundreds of millions worth of COIN stock in recent days. On the other hand, Coinbase's shares are struggling as leading digital assets such as Bitcoin and Ethereum are sliding from their highs.

Coinbase launched on Wednesday on the Nasdaq to much investor anticipation. The crypto sector has been one of the most revolutionary developments to financial markets this century as Bitcoin steadily inserts itself into the mainstream. Companies are increasingly making Bitcoin part of their future plans with Goldman Sachs, VISA, Tesla and others all getting on board.

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Coinbase (COIN) stock forecast

Coinbase will trade under the ticker COIN on the Nasdaq. The listing price is set at $250. Coinbase is to have 261.3 million shares outstanding when it goes public, giving it a market capitalization of nearly $68 billion. This is a steep rise from the private fundraising undertaken by Coinbase in 2018. This fundraising valued Coinbase at around $8 billion. Clearly, valuations and the underlying value of Bitcoin have moved on since 2018.

Coinbase has made known in its listing documents with the SEC that, in private transactions between January and March during this year, shares in COIN were trading at an average of $343.58.

The latest results from Coinbase show just how tied the company's revenues are to the underlying crypto leader Bitcoin. As BTC doubled in price in the first quarter of 2021 so Coinbase's revenue has surged. COIN said revenue for Q1 2021 will likely be $1.8 billion versus $1.3 billion for the full year 2020.

Update April 15: Shares of Coinbase, one of the world's leading cryptocurrency exchanges, is trading at around $365 in Thursday's premarket session, indicating a leap of over 11% above Wednesday's closing price of $328.28. That would put NASDAQ: COIN above the debut price of around $355 recorded in its direct listing on Wednesday. It is essential to note that shares of the digital asset marketplace are somewhat correlated to those of assets traded on it. Bitcoin (BTC/USD) is consolidating its previous gains, while Ethereum is marching higher above $2,400.

Update April 16: Another day, another ARK investment – Cathie Woods' firm has added $110 million worth of Coinbase Global Inc (NASDAQ: COIN) shares to its portfolio. The influential fund manager may be responsible for a 1.7% bump up in the value of the stock in Thursday's after-hours trade. Friday's session will likely be volatile, following the highly anticipated direct listing of the cryptocurrency exchange firm.

Update: Still waiting for Coinbase (COIN) to open. The latest indicated price is $355 a share. At that level COIN is nearly worth more than the Nasdaq, NYSE, and EuroNext combined! The three largest stock exchanges in the world. Is it worth that much? Time and traders will decide!

Update April 15: Shares of Coinbase Global Inc (NASDAQ: COIN), one of the leading cryptocurrency exchanges, have been marching higher on Thursday. At the time of writing, the stock is changing hands at around $338, up nearly 3%. Cathie Woods of ARK bought shares and announced her move, adding to the media attention. Volatility is set to continue.

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Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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