Coinbase becomes the 4th largest listed exchange in the world! The stock price soared 210% in one year

The price of Bitcoin has continued to rise recently, once exceeding $64,000 this morning, setting a new high since November 2022. The surge in trading volume caused Coinbase to experience an outage early in the morning, with some users experiencing problems with being unable to access their accounts and even having their account balances reset to zero.

Coinbase becomes the fourth largest listed exchange in the world

But despite some users complaining in the community, Coinbase is still one of the big winners in this wave of currency market rises. The stock price so far this year It rose 28%, and the increase in the past year was as high as 210%, bringing its market value to US$48.649 billion, surpassing the Hong Kong Stock Exchange and becoming the fourth largest listed exchange in the world.

The market value of the Hong Kong Stock Exchange continues to shrink

According to a report from Hong Kong Ming Pao, from 2005 to 2008, the Hong Kong Stock Exchange ranked first in the market value of global listed exchanges for most of the time. At the end of 2022, its market value was still as high as approximately HK$427.5 billion (approximately US$55.58 billion), surpassing the London Stock Exchange and ranking third in the world.

However, as the Hong Kong stock market weakens, its share price and market value continue to shrink. As of the end of December last year, the Hong Kong Stock Exchange had dropped to approximately HK$339.8 billion (approximately US$55.58 billion). Its market value was surpassed by the London Stock Exchange and ranked fourth in the world. Now it has been surpassed by Coinbase.

The Hong Kong Stock Exchange closed at HK$244.20 today. The current market value is HK$309.6 billion (approximately US$40.25 billion). Compared with the market value of US$55.58 billion at the end of December 2022, it has fallen by more than 27% in more than a year. , compared with the new high stock price of HK$567 set in February 2021, it has plummeted by more than 50%.

According to Bloomberg data, as of December last year, the Hong Kong Stock Exchange’s forecast price-to-earnings ratio was 26.94 times, showing that its valuation is still higher than most exchanges around the world. Among the major listed exchanges, Coinbase ranks first with a forecast price-to-earnings ratio of 124 times.

Bitcoin spot ETF drives new funds into the cryptocurrency field

Wen Jie, director of KGI Asia Investment Strategy Department, analyzed that the United States has launched a virtual currency spot ETF so that retail investors can also participate. Indeed Attracting capital inflows has caused the market value of relevant virtual currency exchanges to rise sharply. However, the performance of Hong Kong stocks has been inferior to other markets in recent years. At the same time, the trading volume of Hong Kong stocks in recent years has been lower than in the past. This directly affects the Hong Kong Stock Exchange, which relies on market trading volume for 70% of its revenue, making it Earnings and valuations fell, and market value shrank simultaneously.

In comparison, benefiting from the recovery of the currency market, Coinbase’s trading revenue in the fourth quarter of last year increased 64% year-on-year to US$529.3 million, and it turned a profit for the first time since 2021, with net profit for the quarter reaching 273.4 million US dollars, and revenue in the first quarter of this year is expected to further grow.

Coinbase CEO Brian Armstrong said last week that the Bitcoin spot ETF has unlocked new funds flowing into the cryptocurrency space. Coinbase has seen huge demand and now every institution is starting to hold cryptocurrencies. Cryptocurrency Will become an integral part of every diversified investment portfolio.

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