Bitcoin Falls After Coinbase Listing on Nasdaq
Bitcoin (BTC) fell in price on Wednesday after setting a new historical high of about $64.8 thousand at the beginning of the day.
The sharp decline occurred after the procedure for listing shares of the Coinbase crypto exchange on the Nasdaq began.
BTC lost more than $3 thousand at the moment, falling below $61.5 thousand on Wednesday evening.
Shares of the cryptocurrency exchange Coinbase (COIN) officially began trading on the Nasdaq trading platform at a starting price of $380 and quickly rose to a high of $429.45.
However, then there was a decline and the auction closed at $328.28 (-13.9% of the opening). The minimum price during the first trading session was $310. The capitalization sank to the area of $85.7 billion.
Coinbase entered the stock market through a direct listing, thus abandoning the option of raising additional capital through an initial public offering (IPO).
Although in the past, shares of other companies associated with the cryptocurrency space were already available for trading on the stock market, the Coinbase listing attracted the most attention from investors and the media in its category.
Rumors of Coinbase's likely plans to go public had been circulating for at least a few months prior.
Coinbase previously distributed 100 shares to each of its 1,700 employees. In accordance with the reference price of the asset of $250, each of the employees of the trading platform received securities worth $25 thousand.
Coinbase was founded in 2012. About 50 cryptocurrencies are represented on the exchange. The platform has 56 million users. In April, the company reported preliminary results for the first quarter of 2021: revenue increased nine-fold year-on — year to $1.8 billion, and net income increased to $730-800 million from $32 million a year earlier.