Coinbase stock has surpassed its original direct listing price for the first time in more than two years as Bitcoin continues to hit new all-time highs.
When the most prominent U.S. cryptocurrency exchange entered the public market through a direct listing in 2021, the starting price was $250 per share. Initially, the stock price soared, reaching a peak of $350 per share in November 2021. However, its first year on the market ended with a 38% loss.
Over the next few years, Coinbase's stock price slumped as the crypto market cooled and the SEC increased regulatory oversight. But over the past year, Coinbase has seen a dramatic turnaround, thanks in part to soaring Bitcoin prices and the SEC's approval of a spot Bitcoin ETF. As a result, Coinbase's stock price has soared more than 300% in the past 12 months.
Coinbase is the only company benefiting from the current bull market, with the company's stock soaring more than 5% today as Bitcoin reaches a new all-time high of $70,000 in the latest bull market isn't it. Microstrategy Inc., the largest Bitcoin holder, has also seen its stock price rise 113% in the last month. NVIDIA stock has also risen more than 20% this month due to its close ties to Bitcoin mining.
Despite Coinbase's latest achievements, early investors who have held on to the stock since the beginning may not feel completely vindicated. By the end of 2022, the company's stock price had plummeted 86%.
Despite this, Coinbase's stock price is on an upward trajectory in line with the crypto market. This increase occurred despite recent technical issues on Coinbase's platform where some users reported their balances dropping to zero.
