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- Coinbase’s market value peaked at $112 billion during its first day of trading.
- The crypto exchange was valued higher than Target or Airbnb at that point.
- Coinbase is still worth more than General Motors, Twitter, or Chipotle.
- See more stories on Insider’s business page.
Coinbase‘s market capitalization soared as high as $112 billion during its trading debut on Wednesday, valuing the business more highly than some of America’s biggest and best-known companies.
At its intraday peak, the 9-year-old cryptocurrency exchange was briefly worth more than Lockheed Martin ($108 billion), Airbnb ($106 billion), or Target ($103 billion). Even after paring its gains and ending the day with a $86 billion market cap, it beat out General Motors ($84 billion), FedEx ($76 billion), and Twitter ($56 billion).
Moreover, Coinbase is currently worth more than twice as much as Chipotle ($43 billion), eBay ($43 billion), Hilton ($35 billion), or Electronic Arts ($41 billion).
Coinbase’s market value is notable because it generated only $322 million of net income in 2020, a fraction of Lockheed’s $6.9 billion or GM’s $6.4 billion in profits last year. However, its backers are betting it will grow into its valuation by cashing in on the crypto boom and expanding its operations.
The company is certainly growing quickly. It earned up to $800 million in net income in the first quarter alone, or more than double its profits for the whole of last year. The group also reported 6.1 million monthly transacting users and $335 billion of trading volume in the period.
Coinbase went public on the Nasdaq index via a direct listing, making it the biggest company yet to take that route to market. Direct listings spare companies from issuing new shares and diluting their investors. They also allow existing shareholders to cash in their stock and avoid the usual six-month lockup period.
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