Coinbase makes splash on market debut with $99.6bn valuation

Coinbase makes splash on market debut with $99.6bn valuation

The cryptocurrency exchange coinbase started trading on Wednesday at a valuation of nearly $100bn (£72bn), in a major boost to supporters of digital currencies such as bitcoin.Coinbase shares opened at $381 (£276) on the Nasdaq, racing past the $250 reference price, and valuing the exchange at $99.6bn (£72bn).

The valuation means that coinbase is worth more than traditional financial institutions such as HSBC, Barclays, and Standard Chartered.It is the first time a major cryptocurrency business has been publicly listed, and is a landmark moment for a technology once considered trivial.Coinbase earns money from transaction fees and has seen its profits soar as cryptocurrency trading has boomed since the start of the pandemic.

Record levels of cash have poured in to digital currencies such as bitcoin and ethereum, plumping up coinbase's margins. Both have seen their prices climb meteorically in the past year,