As Bitcoin reached an all-time high, Coinbase’s stock price surpassed its initial direct listing price for the first time in over two years.
When America’s most popular cryptocurrency exchange entered the public markets through a direct listing in 2021, its starting price was $250 per share. Initially, the stock soared, hitting a high of $350 per share in November 2021. However, it ended its first year on the market with a loss of 38%.
In the following years, Coinbase’s stock price suffered as the cryptocurrency market cooled and regulatory scrutiny from the SEC increased. However, thanks to the Bitcoin price surge last year and the SEC’s approval of a spot Bitcoin ETF, Coinbase has seen a dramatic reversal. As a result, Coinbase’s stock price has surged more than 300% in the past 12 months.
The company’s shares surged more than 5% today after BTC reached new highs of $70,000 during the recent bull market, but Coinbase isn’t the only company benefiting from the current bull market. Microstrategy Inc., the largest Bitcoin holder, also increased its stock price by 113% over the past month. Nvidia shares are also up more than 20% this month due to its close association with Bitcoin mining.
Despite Coinbase’s recent performance, early investors who have held the stock from the beginning may not feel completely vindicated. By the end of 2022, the company’s stock price had plummeted 86%.
Nonetheless, Coinbase’s stock has been on an upward trajectory along with the cryptocurrency market. The rise comes despite recent technical issues with the Coinbase platform, which led to some users reporting zero balances.