The stock price of Coinbase has surpassed its initial direct listing price for the first time in over two years, as Bitcoin reached a new all-time high.
When the most prominent U.S. crypto exchange entered the public market through a direct listing in 2021, the starting price was $250 per share. Initially, the stock experienced a surge, reaching a peak of $350 per share in November 2021. However, it concluded its first year on the market with a 38% loss.
The following years saw Coinbase’s shares struggle as the cryptocurrency market cooled down and regulatory scrutiny from the SEC intensified. However, the past year has witnessed a dramatic turnaround for Coinbase, thanks partly 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.
The company’s stock surged over 5% today after the latest bull run saw BTC reach a new peak of $70,000, but Coinbase is not the only company benefiting from the current bull market. Microstrategy Inc., the largest Bitcoin holder, also increased its shares by 113% in the past month. NVIDIA’s stock also rallied over 20% this month due to its close association with Bitcoin mining.
Despite Coinbase’s latest achievement, early investors who have held onto their shares since the beginning may not feel completely 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. The rise comes despite recent technical issues on Coinbase’s platform, where some users reported seeing zero balances.