Bitcoin Hits Record, Coinbase Tops Direct Listing Price

Since more than two years ago, Coinbase Global Inc. has finally surged back over its direct listing price on Friday. This is the first time that this has happened.

A share of the company's stock reached its highest level since December 2021, when it closed at $256.62 after a 5.8% increase on Friday.

A reference price of $250 per share was established for the cryptocurrency exchange that was the largest in the United States when it went public in 2021 through a direct listing. Despite the fact that there was initial excitement around the stock, which soared to an all-time high closing of $350 in November 2021, the stock concluded its first year of trading with a loss of 38%.

A crypto-winter slammed digital tokens and trading platforms, which came under heightened scrutiny from the United States Securities and Exchange Commission. Coinbase shares continued to be under pressure for the next few years.

Coinbase, on the other hand, has performed exceptionally well over the course of the past year, thanks to the price of Bitcoin, which reached an all-time high on Friday, as well as the approval of exchange-traded funds that invest directly in the digital asset by the Securities and Exchange Commission. Over the course of the past year, the trading platform's stock has increased by more than 300 percent.

Indeed, if the direct listing reference price is exceeded, it is possible that any early investors who are still holding shares may not experience a significant amount of relief. The stock began trading on its first day of trade in 2021 at a price of $381, with retail buying being the primary driver of the price increase. The stock went on to rally as high as 13% before sliding to finish the day lower. By the end of 2022, Coinbase had experienced a decline of 86%.

In spite of this, the stock has been steadily climbing higher with Bitcoin, which is the cryptocurrency with the highest market value in the world. Despite the fact that there were two recent malfunctions on the platform that occurred within a week of each other, which caused some individual investors to realize that their Coinbase accounts had no balances, the increase of the price of the cryptocurrency has not been slowed down.

The most recent increase in the price of Bitcoin has also been beneficial to other equities that are tied to cryptocurrencies. Both MicroStrategy Inc. and CleanSpark Inc. have had rising stock prices throughout the year, extending their upward trend that began in 2023