Cryptocurrency platform Coinbase Global Inc COIN had one of the biggest public listings of all time when it went public via direct listing in April 2021. Here’s a look at how shares have done since the Coinbase IPO.
What Happened: Coinbase went public on April 14, 2021. The company chose a direct listing and went public at a time when it saw massive growth and the cryptocurrency market was booming.
Many analysts believed in the long-term success story for Coinbase. CNBC host Jim Cramer famously said he liked Coinbase to $475 in a tweet on the day of the company’s debut.
Ark Funds CEO Cathie Wood also backed the stock and began accumulating shares of the cryptocurrency platform for several Ark ETFs including the flagship Ark Innovation ETF ARKK.
Coinbase shares have fallen along with the valuations of the major cryptocurrencies. Shares are down over 60% year-to-date in 2022. Although, the company saw shares rise on Thursday on news that the company is partnering with BlackRock BLK to help provide institutional clients with direct access to cryptocurrencies, including Bitcoin.
With the Coinbase share price down significantly since the IPO, it prompts the question of whether investing in Bitcoin instead of shares of the cryptocurrency platform would have fared better. Here is the answer.
Related Link: How To Buy Bitcoin
Investing $1000 in Coinbase IPO or Bitcoin: Coinbase shares debuted on April 14, 2021. Shares opened for trading at $381, significantly higher than an initial reference price of $250. Shares traded between $310 and $429.51 in its first day of trading and closed the day at $328.28, down from the opening price.
A $1,000 investment in the Coinbase IPO at the opening price of $381 could have purchased 2.62 shares. The same 2.62 shares would be worth $243.66 today, based on a closing price of $93 on Friday. This represents a decline of 75.6%.
Bitcoin traded between $61,554.80 and $64,863.10 on April 14, 2021. A $1,000 investment in Bitcoin at the opening price of $63,523.75 could have purchased 0.01574 BTC. The $1,000 investment in Bitcoin would be worth $355.92 as of Friday, based on a price point of $22,612.18. This represents a decline of 64.4%.
While both investments would be down over 60% since April 2021, investors would have fared better by investing directly in Bitcoin instead of leading cryptocurrency platform Coinbase with its IPO.