$8 billion will be the valuation of Coinbase if the investment goes through. This investment will buy out the existing shareholders. Although the specific numbers have not yet come into release. However, by an estimation half of the investment fund will go into the coffers after buying out the shareholders.
A couple of months earlier the valuation of the company says to be around $1.5 billion before the surge in consumer interests. And the valuation will more than quadruple after this investment.
Michael Novogratz, a hedge fund manager says about this valuation of Coinbase. He says it goes to prove that crypto industry is not a “tulip camp”. He also refers to a major bubble in the 17th Century.
Further saying, “Here’s the poster child of the crypto space worth $8 billion! That’s a real company, and Tiger’s not a flake of an investor. These are smart, savvy guys,” at The Economist’s Finance Disrupted conference in Manhattan Tuesday.
Although the company suffers due to the recent selloffs, the CEO Brian Armstrong debates. He doesn’t shows any interest in the peaks and valleys in trading volume. Focusing on “building an open financial system for the world.”
The company has had its talks with investors since the start of 2018 shows that the company has been profitable. Coinbase reportedly tried to value itself at $8 billion in its recent acquisition of Earn.com this year.
So, What Could this Mean?
The company has been appointing new employees as it plans to scale up. Chris Dodd, a former employee of Facebook has been added. The company recently hired Michael Li, a senior executive, and head of analytics and data science at LinkedIn, as its newest vice president of data.
Adding up the numbers, it could mean that the company has been planning and stacking up their numbers for taking the company public. Yes, an IPO. That is just a speculation from our end. What could it be?
Read some Back to Back news coverage of Coinbase:
- Coinbase Revamps Policy to List New Cryptocurrencies
- Caspian Brings Trading Tools to Coinbase Platforms
- Coinbase Planning to Launch a Crypto ETF with BlackRock