Bitcoin Reaches Record High Above $64,000
Bitcoin hit an all-time record of $64,841 on Wednesday morning while the world awaited the launch of Coinbase’s IPO, according to CNBC, citing data from Coin Metrics. Ether, the second most valuable cryptocurrency, reached a record of $2,251.
After years of doubt from Wall Street and regulators, Coinbase would go public on April 14 when it lists its shares on the public stock market via direct listing that could value the company at as much as $100 billion — more than other trading venues such as Intercontinental Exchange, owner of the New York Stock Exchange, as reported by CNBC. Once the stock goes public, current investors will be able to sell their shares to new investors.
Founded in 2012 and based in San Francisco, Coinbase’s crypto exchange is the largest in the U.S. Following the company’s quarterly earnings call on April 6, Coinbase stated that its monthly transacting users have grown 117% quarter-on-quarter, with a net income of as much as $800 million since the start of 2021. The company reported estimated revenues of $1.8 billion in the first quarter, according to CoinDesk.
As cryptocurrency grabs the attention of mainstream investors, Bitcoin more than doubled in price since the beginning of the new year. Tesla bought $1.5 billion worth of Bitcoin in February and now accepts it as a form of payment for its vehicles. “We updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity,” wrote Tesla in a statement on the company’s website.
Goldman Sachs and Morgan Stanley, two of the world’s foremost investment banks, are also looking to expose clients to Bitcoin. Morgan Stanley told its financial advisors that they could place clients into Bitcoin funds starting in April, as was first reported by CNBC in March.
“This is really good and really important for the industry,” Marcus Swanepoel, CEO and co-founder of London-based cryptocurrency platform Luno, told CNBC. “It’s going to increase the trust and transparency in our industry,” he said.
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