Topline
Coinbase’s stock price jumped 4.5% on Monday, hours after the company announced plans to allow retail investors early access to initial public offerings—and after bitcoin’s rally pushed it over $85,000.
The price of Bitcoin also rose on Monday, and was up over $85,000.
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Key Facts
Shares of COIN were up about 4.4% around 12:30 p.m. EDT on Monday, trading at $202.74 per share.
Bitcoin reached $85,000 by midday, extending a rally even after the Senate failed to pass the CLARITY Act, the landmark crypto legislation setting up a regulatory framework for the industry.
The jump happened hours after Coinbase announced it would begin offering customers the opportunity to access IPO shares before companies open on the market by allowing them to submit a “conditional offer to buy” after a company’s price range is made public.
Coinbase will then distribute shares to investors, but the company warned these orders could be “filled in full, in part, or not at all” based on supply from underwriters and demand from customers.
The company also said these shares would be allotted by an algorithm with “established methodology” that prioritizes long-term investors, and users that get banned for selling IPO shares too early could see fewer allotments using this system.
What to Watch For
Oura’s upcoming IPO will be the first Coinbase customers will be able to access early, according to a blog post on Monday. Oura, a wellness tech company that sells smart rings that collect health data, is planning to go public soon, and in an amended Securities and Exchange Commission filing on Monday said it planned to sell 50 million shares at prices between $40-$44, looking to raise up to $2.2 billion.
Key Background
Coinbase’s surge on Monday comes days after the company filed paperwork to start selling “perpetual futures,” or speculative derivative contracts that don’t expire, pegged to several major U.S. stocks. In a post on X on Friday, Coinbase said it was planning to “bring liquid, 24/5 exposure to individual stocks in the US for the first time.” The Commodities Futures Exchange Commission only approved this type of contract in May. Coinbase plans to start offering these contracts on 50 to 60 major stocks, including Apple, Tesla and Nvidia, later this year, the Wall Street Journal reported.
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