The Coinbase application for exchanging cryptocurrency on the screen of an iPhone.
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Bitcoin soared to a new all-time high of more than $ 62,000 on Tuesday as investors awaited the highly anticipated stock market debut of cryptocurrency exchange Coinbase.
Bitcoin’s price is up more than 4% in the past 24 hours to $ 62,718, according to data from Coin Metrics. Ether, the second most valuable digital currency after bitcoin, also set a new record, rising to $ 2,210.
Coinbase will go public on Wednesday on a direct listing that could value the company at a whopping $ 100 billion – more than major trading platform operators like Intercontinental Exchange, which owns the New York Stock Exchange. Crypto investors hail the company’s stock market debut as a significant milestone for the industry after years of skepticism from Wall Street and regulators.
“This is really good for the industry and at least very important for the industry,” said Marcus Swanepoel, CEO and co-founder of London-based cryptocurrency platform Luno. “It will increase trust and transparency in our industry.”
“There is still a little bit of mistrust in the industry and I think having a public company of that size will help many people realize that this is not only an asset class that should be taken seriously, but also a company that should become serious. taken. “
Founded in 2012, Coinbase is the largest cryptocurrency exchange in the United States. Revenues are up this year thanks to a rise in the value of bitcoin and other cryptocurrencies. The company reported estimated sales of $ 1.8 billion in the first quarter of 2021, a nine-fold increase from the same period a year earlier, while profits grew to between $ 730 million and $ 800 million.
Bitcoin has more than doubled in price since the beginning of this year as mainstream investors have switched to cryptocurrencies. Tesla recently made a $ 1.5 billion bet on bitcoin and is now accepting the digital currency as payment for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley are looking to offer their high net worth customers some exposure to bitcoin.
Bitcoin bulls view the cryptocurrency as a store of value comparable to gold that can be used to diversify investment portfolios in times of economic crisis. But skeptical economists such as Joseph Stiglitz and Nouriel Roubini are unconvinced and consider bitcoin to be extremely volatile and a vehicle for illegal transactions.