Coinbase stock exceeds initial listing price amidst Bitcoin surge
Coinbase’s stock price has exceeded its initial direct listing price for the first time in more than two years, as Bitcoin reaches a record-breaking high.
When the prominent U.S. cryptocurrency exchange made its debut on the public market in 2021, its shares were priced at $250 each. Initially, the stock experienced a surge, reaching a peak of $350 per share in November of the same year. However, it ended its first year on the market with a 38% loss.
In the following years, Coinbase’s shares struggled as the cryptocurrency market cooled down and faced increased regulatory scrutiny from the SEC. However, the past year has seen a remarkable turnaround for Coinbase, partially due to Bitcoin’s price surge and the SEC’s approval of spot Bitcoin ETFs. As a result, Coinbase’s stock value has soared by over 300% in the past 12 months.
Today, the company’s stock surged over 5% as Bitcoin reached a new peak of $70,000 during the latest bull run. However, Coinbase is not the only company benefiting from the current bullish market. Microstrategy Inc., the largest holder of Bitcoin, also increased its shares by 113% in the past month. Additionally, NVIDIA’s stock rallied over 20% this month due to its close connection to Bitcoin mining.
Despite Coinbase’s recent achievement, early investors who have held onto their shares since the beginning may not feel entirely vindicated. By the end of 2022, the company’s stock had plummeted by 86%.
Nevertheless, Coinbase’s stock has been on an upward trajectory alongside the crypto market, despite recent technical issues on the Coinbase platform, where some users reported seeing zero balances.
