Market capitalization of leading cryptocurrency company Coinbase for the period acquisition of a bitcoin startup Earn.com according to the internal valuation of the company, was approximately $8 billion, This amount is five times the value of the shares of crypto currency exchange as of 2017, the newspaper notes Recode.
According to reports, in the course of the acquisition Earn.com more than $120 million, Coinbase offered investors a startup to acquire its shares at the above price. Despite the fact that investors Earn prefer cash, part shares Coinbase has received the start-up. An informed source claims that the value of the securities were on the same level as in the proposal for investors.
The press service Coinbase declined to comment.
It is worth noting that in August 2017, venture capitalists praised Coinbase at $1.6 billion While the experts stress that this assessment was given to the rapid growth of bitcoins and other cryptocurrencies at the end of the year.
However, the publication Recode notes that Coinbase was to assess their stock at this price until the passage of the initial valuation of the shares at the time of issue of options to employees, conducted by independent consulting companies. And only after that, when the rating becomes official, it will be able to determine the value of future options of common stock.
It is reported that in recent weeks investors Coinbase has received offers from brokers to sell existing shares at a price range of $4.5-6 billion.
Recall, after the conclusion of transactions between Coinbase and Earn.com founder and CEO of a startup Balaji Srinivasan took the position of technical Director of crypto currency exchange.