Coinbase, the largest cryptocurrency platform in the United States, will have its much awaited initial public offering (IPO) on Wednesday. The company will go public on the NASDAQ stock exchange via “direct listing”. With a standard IPO, a network of investment banks “roadshow”, where they present the company’s finances to investors, in which a price is set. Underwriting banks guarantee a minimum price per share in exchange for high fees, among other costs. With a direct listing, the shares are basically opened in the market only at certain pre-determined times with no banking charges. One of the most well-known direct listings is Google’s 2004 IPO.
Coinbase is going to make IPO company insiders and early investors very rich. For example, the company’s co-founder / CEO Brian Armstrong is expected to end tomorrow with a net worth of between $ 10-14 billion.
Another notable giant winner in the IPO is rapper Nas.
According to research put together by Coindesk.com, Nass has a stake in Coinbase that could be more than $ 100 million.
As you probably know, if you have also been a celebrity net worth reader over the years, Nas is a highly successful venture capital investor.
His role in venture investing was born back in 2013 when he made a six-figure investment in a flawed media brand called “Mass Appeal”. With a capital injection from investment firm White Owl Partners, Mass Appeal was soon revived from a dead brand that today operates a quarterly print publication, creative agency, a digital video production company and documentary production company. In 2014, a record company was launched at Mass Appeal that released NAS’s 2018 album “Nasir” and the 2020 album “King’s Disease”.
Upon the success of his work with Mass Appeal, Nash co-founded Queenbridge Venture Partners to further his investment. He raised about $ 10 million from investors and injected several million of his own dollars.
He gave seed to dozens of companies, reportedly hearing 100 pitches a month on this day.
Some of Queensbridge’s biggest hit investments include
- Seat geek
- General Assembly
- Robin Hood
- Pill pack
Queensbridge invested in Coinbase’s 2013 Series B round which raised $ 25 million and gave the company a valuation of $ 143 million. At that time the price of a single bitcoin was about $ 130.
According to CoinDesk’s analysis, if Queensbridge’s average investment is between $ 100,000 to $ 500,000, the VC firm would have bought between 100,000 and 500,000 shares in that period.
On Wednesday, Coinbase is expected to debut at $ 350 per share. At that price per share, the company would be valued at $ 100 billion. If this happens, and these numbers are accurate, then the value between Nas’s share will be:
$ 35 million and $ 175 million
If Coinbase earns above expectations and ends up with a price of $ 440 per share, as some price targets predict on the high end, Nas’ stake will be worth the middle:
$ 44 million and $ 220 million
Vein on Nasdaq. Has a nice ring to it!