Popular exchange Coinbase recently valued its stock at $8 billion, according to Recode. This figure is very different from their August estimate of $1.6 billion.
Coinbase is rumored to have acquired Bitcoin startup Earn.com for approximately $120 million. While some investors were paid in cash, some members of his management team accepted payment in the form of equity stakes. Supposedly, former Earn CEO (now Coibase CTO) Balaji Srinivasan was among them.
The final valuation of the firm will be confirmed once the company completes its Form 409a audit, the official report detailing the value of the company's shares.
The 500% increase in the stock price was most likely triggered by the huge increase in interest in cryptocurrency that has been going on for several months. While digital markets have yet to return to their December highs, the crypto space is growing so much that Coinbase reported $1 billion in profits last year.
As one of the most convenient platforms for buying and selling Bitcoin, Litecoin, Ethereum and Bitcoin Cash, Coinbase positions itself as the most popular exchange for first-time cryptocurrency buyers. However, recently the competition has become increasingly fierce. Apps like Revolut and Robinhood are also gaining traction, offering cheaper fees and just as (if not better) user-friendly interfaces. UK-based Revolut was recently valued at $1.7 billion.
Not surprising, especially considering Coinbase is notorious for high fees and incredibly slow customer service. And yet, Coinbase is still a leader and has released many new products, including Coibase Custody, Coibase Ventures and index fund.
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