Coinbase CEO Brian Armstrong: Coinbase, the largest cryptocurrency trading platform in the United States, simply went public. The company used a slightly unusual “direct listing” for its debut. With a direct listing, there are no investment banks or pools of wealthy investors who promise to create a stock market once it goes public. Instead the shares of the company are essentially hoisted on just one exchange, in this case the NASDAQ, for investors at whatever price in the market they buy immediately.
Prior to the IPO, Coinbase had a private valuation of $ 65 billion.
The world had initially expected the company to debut at $ 250 per share. As I type this article, Coinbase is trading at $ 381, giving the company a market cap of $ 100 billion.
The company’s co-founder Brian Armstrong owns 20% of the company. At today’s market cap levels, that gives him a net worth of $ 20 billion.
This means that Brian Armstrong has been ranked among the 100 richest people in the world.
By our count, Brian Armstrong has a net worth of $ 20 billion, making him the 73rd richest man in the world. He is nearly as wealthy as Luxottica president Leonardo del Vecchio, Red Bull founder Dietrich Metschitz and vacuum tycoon James Dyson.
Setting up coinbase
According to legend, Bryan came around 2010 in an original bitcoin whitepaper written by Satoshi Nakototo, the mysterious founder of the cryptocurrency. He was working as a consultant at the time and would later explain that he “could not get bitcoins out of my head” after reading the whitepaper.
At that time it was extremely difficult to buy or sell bitcoins. Even with a master’s degree in computer science, Armstrong found the process cumbersome. At some point he would have an extremely valuable revelation. The revelation is simple and clear.
His revelation was that mainstream investors would eventually need a user-friendly way to buy and sell digital currency.
Armstrong soon partnered with a friend named Fred Ehrasam to create a platform for business crypto. Brian and Fred met in the Bitcoin subreddit.
He officially founded Coinbase in 2012 after raising $ 150,000 from Tech Incubator Y Combinator. Brian served as CEO. Fred served as president.
A year later the pair raised $ 25 million in a Series B funding round, valued at $ 143 million by the company. Investors in this round included Union Square Ventures, Andreessen Horowitz and Queensbridge Venture Partners (which was co-founded by rapper Nas). At that time the price of a single bitcoin was $ 130.
Fred Ehsaram stepped out of his day-to-day role in 2017. He remains on board and owns about 9% of the Coinbase stock, which gives him a net worth of $ 9 billion in today’s valuation.
In 2020, Coinbase generated revenue of $ 1.28 billion, doubling 2019 revenue. Profit topped $ 322 million in 2020. The company incurred a loss of $ 31 million in 2019.
In the first quarter of 2021, the company generated $ 700 – $ 800 million in profits. He is in a quarter.
This is the last private funding round in 2018, with the company valued at $ 8 billion.
Prior to the company’s IPO, the company’s shares traded in private markets at a valuation of approximately $ 65 billion.
A few minutes ago, Combace made its first appearance on the NASDAQ. Yesterday, the first estimated price was $ 250 per share. As I mentioned, the stock broke out of the $ 380 per share gate some time ago.
Today more than 50 million people use Coinbase to purchase about 50 different cryptocurrencies.
Coinbase has about 1,200 employees who are feeling great today.