That valuation is based on $350 a share, the price the stock was trading at on the Nasdaq Private Market auction that ended last Thursday, the people said, asking not to be identified because the information was private.
Thursday’s auction was the last timeshares are being sold on the Nasdaq Private Market before Coinbase goes public in late March, the people said.
They added that some of the shares had traded at $375 earlier in the auction, valuing the company at close to $100 billion.
Private trading is more restricted, with smaller volumes than public markets, and does not provide a complete picture of a company’s worth. The Nasdaq private market is a Nasdaq division dedicated to trading stocks before they go public.
The Nasdaq still needs to set a reference price for investors ahead of the direct listing, which is partly based on private trading activity. These private trades may or may not be indicative of where the stock will trade in the future.
Coinbase and Nasdaq representatives declined to comment.
The offering will be Nasdaq’s first major direct listing, which is an alternative to a traditional IPO. Spotify Technology SA, Slack Technologies Inc., Asana Inc., and Palantir Technologies Inc. were all previously listed on the New York Stock Exchange.
Roblox Corp., an online video game company, has also announced that it will pursue a direct listing after delaying its IPO and raising funds privately.
According to Coinbase’s filings with the Securities and Exchange Commission, the transaction will not generate any proceeds. The company stated that it became a “remote-first” company in May, rather than listing an address for its headquarters.
The company swung from a loss to a profit of $322 million last year on net revenue that more than doubled to $1.14 billion, according to its filings.
Started in 2012, Coinbase has raised more than $500 million from backers that include Y Combinator and Greylock Partners, Tiger Global Management, Andreessen Horowitz, Ribbit Capital, Union Square Ventures, and co-founder Frederick Ernest Ehrsam III among its biggest shareholders, filings showed.
Owners of Coinbase’s Class A common stock will be able to sell in the IPO without being bound by any lock-up agreements. According to the filing, Class A stock has one vote per share, while Class B has twenty.