Coinbase DPO Is Here! Should You Buy COIN Stock?

3 min read | April 14, 2021 05:34 AM EDT | By Shreya Biswas

Coinbase DPO Is Here! Should You Buy COIN Stock?

Should You Invest In Coinbase DPO?

Since the company is not holding an IPO, there is no role of paid underwriters in Coinbase’s public debut. While this takes away the added expense of hiring such financial services, it also means that there are no underwriters to set an IPO price for its shares based on investors’ interest.

In case of direct listings, the shares are sold primarily at a market-driven price after the company in question has put up a price for reference.

Coinbase has reportedly set a reference price of US$ 250 per share for its direct listing and posts a fully diluted share count of some 261.3 million, as per its SEC filings. This gives the crypto trading giant a valuation of US$ 65.3 billion, which is significantly up from its valuation of about US$ 1.6 billion in 2017.

Founded in 2012, Coinbase is said to have raised about US$ 847.3 million via private financing over 14 rounds of funding over the years, as per data platform Crunchbase.

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Ahead of its much-awaited public listing, Coinbase created a buzz by giving a glimpse of latest financials. According to its filings, Coinbase saw its revenue significantly expand from US$ 585.1 million in Q4 2020 to a total of US$ 1.8 billion of the first quarter of 2021.

All things considered, Coinbase DPO is garnering a lot of attention, especially among crypto enthusiasts, as it is likely to open the digital currency market to a wider audience. Also, as a public listing comes only after a green signal from securities regulatory bodies, Coinbase’s DPO adds a big milestone for the entire crypto market.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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