Coinbase, the leading cryptocurrency exchange in the United States, has reached a staggering valuation of $85 billion — surpassing major financial institutions like the Intercontinental Exchange (ICE), owner of the New York Stock Exchange. With its long-anticipated public debut on the horizon, investors, traders, and fintech enthusiasts are closely watching how this milestone moment will shape the future of digital finance.
👉 Discover how Coinbase’s market entry could impact your investment strategy in 2025.
The Road to a $85 Billion Valuation
As of early 2025, shares of Coinbase have been trading privately on platforms like Nasdaq Private Market at around $303 per share, reflecting strong investor confidence ahead of its direct listing. While the official public debut price was set at $250 per share with a fully diluted share count of 261.3 million — valuing the company at approximately $65.3 billion — market momentum quickly pushed expectations higher.
This surge aligns with broader trends in the crypto market, particularly Bitcoin’s record-breaking climb to $50,000 in early 2025, representing a 66% increase from the start of the year. As Bitcoin gains institutional adoption, so too does Coinbase, which executed Tesla’s landmark $1.5 billion Bitcoin purchase in recent years.
With over 43 million registered users and $90 billion in assets under management, Coinbase now outpaces retail trading platforms like Robinhood, which reported 13 million users during its peak following the GameStop trading frenzy.
A Brief History of Innovation and Growth
Founded in 2012 by former Airbnb engineer Brian Armstrong and ex-Goldman Sachs trader Fred Ehrsam, Coinbase emerged during Bitcoin’s infancy, when one coin was worth just $15. The startup gained early credibility by participating in Y Combinator’s summer program and securing a $5 million Series A round led by Union Square Ventures.
From the outset, Coinbase positioned itself as a trustworthy gateway to crypto — a reputation reinforced by media outlets like TechCrunch, which praised it as “one of the places that looked less sketchy” in 2013.
Growth accelerated rapidly:
- By 2015, Coinbase reached 1 million users.
- It raised $100 million from top-tier investors including Andreessen Horowitz and even the NYSE.
- Major brands such as Dell, Overstock, and Expedia began accepting Bitcoin payments through Coinbase integrations.
Tesla later followed suit, integrating Coinbase services to support crypto purchases for electric vehicles — further cementing its role as a bridge between traditional finance and digital assets.
How Does Coinbase Make Money?
Coinbase operates through four core business segments, each designed to serve different user needs across the crypto ecosystem:
1. Coinbase (Retail Platform)
The primary interface for beginners and casual investors, allowing easy buying, selling, and storing of cryptocurrencies like Bitcoin, Ethereum, and stablecoins. Revenue is generated via transaction fees and spreads.
2. Coinbase Pro
Tailored for experienced traders, this advanced platform offers lower fees, sophisticated charting tools, API access, and multi-country support. It also includes mobile functionality and enhanced security features.
3. Coinbase Custody
Launched in 2018, this institutional-grade service provides secure cold storage solutions for hedge funds, endowments, and high-net-worth clients. Today, it manages more assets than any other crypto custodian.
4. Coinbase Wallet
More than just a storage tool, this self-custody wallet doubles as a decentralized browser, enabling users to interact with dApps (decentralized applications), trade tokens peer-to-peer, and manage NFTs.
In 2017, Coinbase reported over $1 billion in annual revenue, doubling that figure by 2019. Its profitability has remained closely tied to crypto market cycles — particularly Bitcoin’s price performance — but diversification into staking, lending, and institutional services has helped stabilize income streams.
Controversy and Corporate Culture
Despite regulatory compliance successes and technological leadership, Coinbase has faced internal challenges under CEO Brian Armstrong’s leadership.
In September 2024, Armstrong issued a controversial memo declaring Coinbase an “apolitical” workplace — a stance diverging from Silicon Valley norms. He stated:
“We are an intense culture and we are an apolitical culture.”
The policy sparked backlash after Armstrong offered severance packages to employees who disagreed with the company’s direction. Approximately 60 employees accepted the offer, raising questions about inclusivity and corporate values.
Tensions had already surfaced earlier that year during a company-wide meeting in June amid nationwide Black Lives Matter protests. Armstrong declined to publicly state “Black Lives Matter” on the call, prompting some staff to stage a virtual walkout.
While some praised the focus on productivity and neutrality, others criticized the move as tone-deaf. As Coinbase transitions into a public entity, balancing innovation with inclusive governance remains a key challenge.
What’s Next for Coinbase?
With its direct listing complete and shares now publicly traded, Coinbase is poised to influence both Wall Street and Web3. Its massive user base, regulatory compliance framework, and diversified product suite position it as a leader in the next phase of financial evolution.
However, success isn’t guaranteed. Market volatility, regulatory scrutiny from agencies like the SEC, and competition from platforms like Binance and Kraken could impact long-term growth.
👉 Learn how emerging crypto exchanges are responding to Coinbase’s market dominance.
Frequently Asked Questions (FAQ)
Q: When did Coinbase go public?
A: Coinbase completed its direct listing on April 14, 2025. Unlike a traditional IPO, no new shares were issued — existing shares began trading directly on the Nasdaq exchange.
Q: What is a direct listing?
A: A direct listing allows existing shareholders to sell their shares without raising new capital or using underwriters. It’s often chosen by mature companies with strong brand recognition.
Q: How many users does Coinbase have?
A: As of January 2025, Coinbase reported 43 million verified users worldwide — significantly more than competitors like Robinhood.
Q: Is Coinbase safe to use?
A: Yes. Coinbase maintains robust security protocols, including two-factor authentication, encryption, offline cold storage for most assets, and insurance coverage for digital holdings.
Q: Can institutions use Coinbase?
A: Absolutely. Through Coinbase Custody and Prime services, institutions can access secure storage, trading APIs, staking solutions, and OTC desks for large-volume transactions.
Q: What cryptocurrencies does Coinbase support?
A: The platform supports major coins like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and hundreds of ERC-20 tokens. New listings are regularly evaluated based on demand and compliance.
Final Thoughts: A New Era for Digital Finance
Coinbase’s journey from a Y Combinator startup to an $85 billion public company reflects the explosive growth of cryptocurrency over the past decade. As adoption widens — driven by retail investors, institutions, and global payment innovations — platforms like Coinbase will remain central to the digital economy.
Whether you're a seasoned trader or exploring crypto for the first time, understanding Coinbase’s role in shaping financial infrastructure is essential.
👉 Start exploring today’s top-performing cryptocurrencies with real-time data and insights.