The Coinbase cryptocurrency exchange app seen on an iPhone screen.
Bitcoin rose to a new high of more than $ 63,000 on Tuesday, as investors awaited the long-awaited debut on the stock market from cryptocurrency exchange Coinbase.
The price of bitcoin jumped 5% in the last 24 hours to hit $ 63,171, according to data from Coin Metrics. Ether, the second most valuable digital currency after bitcoin, also set a new record, rising to $ 2,222.
Coinbase will go public on Wednesday through a direct listing that could value the company at up to $ 100 billion, more than major shopping center operators like the Intercontinental Exchange, which owns the New York Stock Exchange. Cryptocurrency investors hail the company’s debut on the stock market as a major milestone for the industry after years of skepticism from Wall Street and regulators.
“This is really good and really important for the industry,” Marcus Swanepoel, CEO and co-founder of London-based cryptocurrency platform Luno, told CNBC. “It’s going to increase trust and transparency in our industry.”
“There is still a bit of mistrust in the industry and I think taking a company of that size public will help a lot of people realize that this is not just an asset class to take seriously, but also a business to take. really”.
Coinbase, founded in 2012, is the largest cryptocurrency exchange in the United States. An increase in revenue has been seen this year thanks to an increase in the value of bitcoin and other cryptocurrencies. The company reported estimated revenue of $ 1.8 billion in the first quarter of 2021, a nine-fold increase over the same period last year, while profits grew to between $ 730 million and $ 800 million.
The price of Bitcoin has more than doubled since the beginning of this year, as major investors launched into cryptocurrencies. Tesla recently made a $ 1.5 billion bet on bitcoin and now accepts the digital currency as a payment method for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley are looking to offer their wealthy clients some exposure to bitcoin.
Bitcoin bulls view the cryptocurrency as a gold-like store of value that can be used to diversify investment portfolios in times of economic crisis. But skeptical economists like Joseph Stiglitz and Nouriel Roubini are unconvinced and see Bitcoin as extremely volatile and as a vehicle for illegal transactions.