Cryptocurrency platform Coinbase Global Inc COIN had one of the biggest public listings of all time. Here’s a look back at how shares have done since the Coinbase IPO.
What Happened: Coinbase went public on April 14, 2021. The company chose a direct listing and went public at a time when it saw massive growth and the cryptocurrency market was booming.
Many analysts believed in a long-term success story for Coinbase. CNBC host Jim Cramer famously said he liked Coinbase to $475 in a tweet on the day of the company’s debut.
Ark Funds CEO Cathie Wood is a bull on the cryptocurrency platform and added shares of Coinbase to several of the company’s ETFs in recent months. Coinbase is the third-largest holding in the Ark Fintech Innovation ETF ARKF at 6.1% of holdings. Coinbase is also the eighth-largest holding in the Ark Next Generation Internet ETF ARKW and 14th-largest holding in the Ark Innovation ETF ARKK at 5.2% and 3.5% of assets, respectively.
Coinbase shares have been hurt in 2022 by the crypto winter and major liquidation concerns at cryptocurrency platforms. The bankruptcy of FTX has led to major declines for cryptocurrencies such as Bitcoin BTC/USD and Ethereum ETH/USD.
Investing $1,000 In Coinbase IPO: Coinbase went public via a direct listing on April 14, 2021. Investors had to wait until shares opened for trading before they could buy in, whereas a traditional IPO sometimes allows retail investors a small allocation of shares at a set price.
The reference price for Coinbase shares was $250, but shares opened significantly higher at $381. Shares would trade over $425 in the first day of trading before closing at $328.28.
A $1,000 investment could have bought 2.62 shares of Coinbase stock at the opening price of $381. The 2.62 shares of Coinbase would be worth $113.87 today based on a price of $43.46 for Coinbase at the time of writing. This represents a loss of 88.6% over the last 19 months.
Coinbase vs. SPY, BTC: The SPDR S&P 500 ETF SPY, which is a common gauge of the market, was down 4.1% over the same time period of the Coinbase IPO to present day.
Leading cryptocurrency Bitcoin had also fared better than Coinbase. A $1,000 investment in Bitcoin on the day of the Coinbase IPO could have purchased 0.0154 BTC. That $1,000 investment would be worth $252.31 today, down 74.8% today.
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