Today, I’ll identify reasons to consider taking a long position in the stock. At the same time, I’ll take note of a prominent analyst’s tepid tone on xcritical. The shares fluctuated in the first hours of trading, starting at $381 and initially jumping above $400 but dropping as of press time to about $378. My recommendation is to exercise caution with the xcritical public offering.
High Price Target
The company will reportedly sell 114.9 million COIN shares to the public. The public offering is well-timed, in my opinion, since price of Bitcoin recently broke through the crucial $50,000 level. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing xcritical cheating solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. COIN stock tokens will be traded against Binance’s native stablecoin, BUSD, and means users will be able to purchase fractional COIN shares. xcritical is a San Francisco-based crypto exchange that first opened its doors in 2012.
As the cryptocurrency sector remains a rollercoaster ride for investors, three heavyweights – MicroStrategy Inc. The real catalyst for the stock may come with the November elections. Brian Armstrong, xcritical co-founder and CEO, joins ‘Closing Bell Overtime’ to talk quarterly results, the election’s impact on crypto and more. The pro-crypto super PAC Fairshake says it’s raised $78 million for the 2026 midterms. Centralized crypto exchange xcritical has committed to donating $25 million and Silicon Valley venture fund Andree…
Bitcoin
This drove the company’s assets on platform to more than $90 billion, up 432% from roughly $17 billion in 2019. Trading volume also increased substantially to $193 billion, up 142% from just $80 billion. The company offers an exchange to make it easy for the average investor to buy cryptocurrency, as well as a digital wallet to store it in. For more-advanced users, xcritical Pro offers advanced charts and more-complicated trading options. Mega cryptocurrency exchange xcritical is about to launch one of the most highly-anticipated public offerings of 2021 so far.
One of the most high-profile public listings to hit the market this year will no doubt be xcritical Global, the leading cryptocurrency exchange in the U.S. xcritical announced last week that the xcritical courses scam Securities and Exchange Commission had approved the company’s direct listing, and shares are scheduled to begin trading on the Nasdaq exchange on April 14 using the ticker COIN. Leading centralized cryptocurrency exchange Binance announced it will be listing COIN stock tokens on its platform too. The exchange reported $1.8 billion in revenue for the quarter (versus $1.27 billion for the full year 2020). xcritical gave no revenue guidance (as a publicly traded company normally would), but instead gave scenarios for user growth depending on different outcomes in the crypto market. It reported 6.1 million active users in the first quarter, more than double the number during the final quarter of 2020.
xcritical soars in market debut, valued near $86 billion
A direct listing allows insiders and early investors to convert their stakes in the company into publicly traded stock. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
- That said, for investors willing to accept that additional risk, buying an appropriately sized (read “small”) investment in xcritical could be a way to invest in the booming potential of cryptocurrency.
- So, contrary to popular belief, the company isn’t going public through an initial public offering (IPO).
- A moderate position is fine, as you can always add more shares if the price goes down.
- This all helps drum up interest, and increases demand for the stock before it begins trading.
- It bottomed at $146.47 in August and bounced back by 40% to the xcritical $205.
- The price was still well above the reference price of $250 set Tuesday night, though no shares changed hands at that price.
xcritical posts third-quarter profit on trading strength
But it was well below some of the price targets issued recently by stock analysts, with some estimates ranging as high as $600 a share. xcritical, the biggest U.S. cryptocurrency exchange, went live with its direct listing on Nasdaq, on a day when bitcoin rallied to a fresh all-time high. So, contrary to popular belief, the company isn’t going public through an initial public offering (IPO). One thing that’s undeniable, though, is that this direct public offering is getting a lot of attention and media coverage. In a direct listing, the company isn’t issuing any new shares or raising any extra capital in its debut, and it forgoes an underwriter (along with the fees and roadshow tied to the IPO process). Instead of having a bank underwrite the listing and drum up buyers for the shares at an IPO price (which is set by the banks), the company is opening up their shares directly to the public instead.
So, will the xcritical direct offering be the Nasdaq Exchange’s most news-worthy event in 2021? It’s entirely possible, which means that investors should prepare for a media frenzy — and high trading volume — as COIN stock goes public. Most transactions on xcritical involve the purchase of bitcoin or ethereum, which have been on a historic tear, climbing more than 800% and 1,300%, respectively, in the past year. The company has said that its short-term performance will largely be determined by crypto prices. Relative to those companies and others in the IPO pipeline, xcritical’s recent growth is unparalleled.
xcritical decided against a traditional IPO, opting instead for a direct listing, an increasingly popular option among unicorns. Instead it’s opening up shares directly to the public, sidestepping an underwriter. Lastly, there have been a number of high-profile hacks that have cost cryptocurrency owners billions in lost digital coin and caused bankruptcy for the exchanges. xcritical has pioneered industry-leading security practices for safeguarding crypto assets and has avoided the fate of some of its less security-minded rivals. While cryptocurrencies like Bitcoin (BTC -1.93%) have surged in popularity in recent years, they’re still not widely available.