Coinbase Debuts on the Stock Market Today. NASDAQ Sets Initial Reference Price at $250
Cryptocurrency exchange Coinbase is set to list on the NASDAQ today. The exchange operator has established an initial reference price of $250 per share. According to NASDAQ, this reference price was determined in consultation with Coinbase’s financial advisors and by taking into account private transactions in the company’s stock.
In its announcement, NASDAQ explained: “As a direct listing, COIN is subject to a regulatory trading halt until Nasdaq opens trading in accordance with the procedures described in Rules 4120(c)(8) and (9) and 4753. Because COIN has not yet commenced trading, Nasdaq must determine the price to be used for purposes of Rules 4753(a)(3)(A)(iv)(b) and 4753(b)(2)(D)(ii). This reference price is $250.00.”
NASDAQ noted that because the security has not previously traded on any exchange, there is no prior closing price. As a result, Regulation SHO Rule 201 will apply to this security beginning on its second trading day on NASDAQ. The $250 figure corresponds to the IPO reference price for Coinbase, even though the company is listing via a direct listing rather than a traditional IPO.
The exchange operator emphasized that the reference price is not an offering price and that no shares were bought or sold at that figure. Coinbase’s public opening price will be established based on the buy and sell orders submitted for the NASDAQ opening auction.
Coinbase is one of the leading cryptocurrency exchanges in the United States. Given its market position and revenue, its public listing has been among the most anticipated events in the cryptocurrency sector. Ahead of today’s highly anticipated direct listing on NASDAQ, Coinbase announced that it has granted shares to employees.
A company spokesperson told CoinDesk that Coinbase provided 100 shares to each of its more than 1,700 employees as a gesture of appreciation.
The Irish Business Post reported that employees first learned about the share gifts during an all-hands meeting on March 25. At the reference price of $250 per share, each employee’s allocation represents a notional value of about $25,000. Coinbase is expected to trade on NASDAQ under the ticker symbol COIN.