Crypto Exchange Coinbase Thinks It’s Worth $8 Billion: Report

Cryptocurrency exchange and brokerage giant Coinbase internally values itself at $8 billion, sources familiar with the company’s offer to purchase Bitcoin startup Earn.com say.

Tech news outlet Recode reports that when Coinbase acquired Earn.com last month, its offer included an equity package that tacitly valued the exchange operator at $8 billion.

That’s a significant step up from its most recent appraisal, which occurred less than one year ago.

Coinbase received a $1.6 billion valuation last August after concluding a $100 million Series D funding round led by IVP. This made the company the first “cryptocurrency unicorn” and cemented its place as one of Silicon Valley’s most coveted investments.

Much has happened in the eight months hence, however, both at Coinbase and in the cryptocurrency industry writ-large.

Coinbase received a $1.6 billion valuation last August after concluding a $100 million Series D funding round led by IVP. This made the company the first “cryptocurrency unicorn” and cemented its place as one of Silicon Valley’s most coveted investments.

Much has happened in the eight months hence, however, both at Coinbase and in the cryptocurrency industry writ-large.

Coinbase is said to have raked in more than $1 billion in revenue in 2017, with a large percentage of that accumulated during the fourth-quarter rally that drove the Bitcoin price to nearly $20,000.

The exchange operator has reportedly approached regulators to discussing registering as a licensed brokerage firm, which would allow it to list security tokens in a compliant manner.

The company has also gone on an “acqui-hiring” spree, purchasing Earn.com for more than $100 million and adding one-man startup Cipher Browser to its portfolio.

Moreover, Coinbase has expanded its product line significantly, adding a cryptoasset custodial service for institutional buyers and launching a cryptocurrency index fund. The company has also revamped its payments platform, through which merchants can accept cryptocurrency payments with little effort on their end.

But though Coinbase’s internal appraisal represents a $6.4 billion increase in just eight months, it’s not the only one who believes its value has soared. Brokers have reportedly approached current Coinbase investors about purchasing their shares at prices that would give the company a $4.5 billion to $6 billion market cap.

Coinsecure’s chief executive officer, Mohit Kalra, revealed Venezuela was looking to add the Petro to the platform, so the cryptocurrency could be traded against bitcoin and the rupee. He added that the 30 percent discount was offered during the discussions. He was quoted as saying:

“They are going to different countries and making offers. The offer that they have given to the Indian government is: you buy Petro and we will give you a 30 per cent discount on oil purchases.”

As covered, Venezuelan president Nicolas Maduro has claimed the Petro’s pre-sale raked in $5 billion. The cryptocurrency was sold on 127 countries, and reportedly saw 171,000 would-be investors register to enter its pre-sale.

Kalra further added that Venezuela wanted to host a conference in India, in which Maduro would pitch the oil-backed cryptocurrency. The deal Coinsecure has with the country’s government will now see it offer Venezuela White Label cryptocurrency exchange solutions, so the Petro can be traded in Venezuela.

Kalra added:

“That would be run by their brand name, but the back-end will be us. We plan to provide them with 10-15 cryptocurrency players.”

Angel Gonzales, Venezuela’s vice-minister for hydrocarbons, told Business Standard that the country’s government expects countries like India to have a “huge interest” in its cryptocurrency.

As covered by CCN, the Petro has drawn criticism, as the century-old think tank Brookings Institute claimed it undermines legitimate cryptocurrencies, and the country’s own National Assembly declared it unconstitutional.

US President Donald Trump has banned US citizens and residents from purchasing the oil-backed cryptocurrency, as it was created to bypass US sanctions. Venezuela has thanked Trump’s Petro ban, as it claims it was free publicity that helped double the number of interest investors.

“That would be run by their brand name, but the back-end will be us. We plan to provide them with 10-15 cryptocurrency players.”

Angel Gonzales, Venezuela’s vice-minister for hydrocarbons, told Business Standard that the country’s government expects countries like India to have a “huge interest” in its cryptocurrency.

As covered by CCN, the Petro has drawn criticism, as the century-old think tank Brookings Institute claimed it undermines legitimate cryptocurrencies, and the country’s own National Assembly declared it unconstitutional.

US President Donald Trump has banned US citizens and residents from purchasing the oil-backed cryptocurrency, as it was created to bypass US sanctions. Venezuela has thanked Trump’s Petro ban, as it claims it was free publicity that helped double the number of interest investors.

Nevertheless, Business Standard revealed Venezuela plans to make the Petro its official currency by 2020. The country has claimed it will have a positive impact on its economy in “three to six months,” and that it may charge for exports in the currency.

Some investors, however, are still skeptical when it comes to the Petro. Speaking to Business Standard, a source stated:

“Even if it is backed by oil, it is more of a centralised currency. Nobody knows how many coins will be launched or issued. It is not decentralised like bitcoin or ethereum.”

Coinbase is said to have raked in more than $1 billion in revenue in 2017, with a large percentage of that accumulated during the fourth-quarter rally that drove the Bitcoin price to nearly $20,000.

The exchange operator has reportedly approached regulators to discussing registering as a licensed brokerage firm, which would allow it to list security tokens in a compliant manner.

The company has also gone on an “acqui-hiring” spree, purchasing Earn.com for more than $100 million and adding one-man startup Cipher Browser to its portfolio.

Moreover, Coinbase has expanded its product line significantly, adding a cryptoasset custodial service for institutional buyers and launching a cryptocurrency index fund. The company has also revamped its payments platform, through which merchants can accept cryptocurrency payments with little effort on their end.

But though Coinbase’s internal appraisal represents a $6.4 billion increase in just eight months, it’s not the only one who believes its value has soared. Brokers have reportedly approached current Coinbase investors about purchasing their shares at prices that would give the company a $4.5 billion to $6 billion market cap.

Coinbase did not immediately respond to a request for comment