The listing wasn’t without drama. Coinbase shares opened at US$381, giving it a valuation of close to US$100 billion. The price rose to almost US$430 before retreating to close at US$328.28. It’s another milestone though in putting crypto further into the mainstream. The company went public as Bitcoin -- which together with Ethereum made up most of its 2020 trading volume -- is trading around its all-time high. Bitcoin has more than doubled in price this year to about US$64,000.
Instant Equity
Chatterjee’s Coinbase stake is a dramatic example of the instant equity employees can receive when joining startups. Gone are the days when equity was mainly distributed in tranches over many years, a reward for loyalty as well as performance.
Chatterjee joined Coinbase last February after three years at Alphabet Inc.’s Google, where he led the company’s shopping platform during his second stint at the search giant. He previously headed product and delivery for mobile search ads and AdSense before a brief stop at Indian e-commerce site Flipkart. His experience at the Bangalore-based company appealed to Armstrong.
“When someone has only lived, worked, or transacted in a country like the United States, it can be difficult to grasp the size of the opportunity in simplifying cross-border transactions,” Armstrong, who is Coinbase’s chief executive officer, wrote in blog post last year announcing Chatterjee’s appointment.
Other major investors include Andreessen Horowitz, Chase Coleman’s Tiger Global Management and Ribbit Capital. QueensBridge Venture Partners, an investment firm for rapper Nasir Jones, known as Nas, invested eight years ago and still holds a stake in the company that may now be worth more than US$100 million, according to crypto news site CoinDesk.
