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Nasdaq Sets Coinbase Reference Price at $250

Anticipation builds for cryptocurrency exchange’s direct listing Wednesday
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The Nasdaq stock exchange pinned a reference price of $250 a share on Coinbase late Tuesday, a day ahead of the cryptocurrency exchange’s highly anticipated direct listing.

At that price, Coinbase would be valued at about $65 billion, CNBC reported. However, a reference price only reflects recent activity in private markets and doesn’t show where a stock in a direct listing will actually open.

Recent direct listings have included Roblox  (RBLX) - Get Roblox Corporation Class A Report, Palantir  (PLTR) - Get Palantir Technologies Inc. Class A Report and Slack  (WORK) - Get Slack Technologies, Inc. Class A Report, and have opened an average of 37% above their reference prices, CNBC reported. 

Prices for Bitcoin rose to records Tuesday, topping $63,000 ahead of the Coinbase IPO.

On Tuesday, analysts at MoffettNathanson put a $600 price target and buy rating on Coinbase.

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“We view Coinbase as a leading technology infrastructure provider for the cryptocurrency ecosystem, providing essential building blocks to facilitate the use of cryptocurrencies,” MoffettNathanson analyst Lisa Ellis wrote in a commentary.

Coinbase, which is headquartered in San Francisco, will trade under the symbol COIN. 

Earlier this month, BTIG initiated coverage of analytics software firm MicroStrategy MSTR with a buy rating. The company owns about 91,000 bitcoin, which it bought for $2.21 billion, or an average $24,214 each, according to regulatory filings.

Bitcoin, is perceived as a store of value by many of its adherents, including the Winklevoss twins, who were early adopters and are rated as bitcoin billionaires.

On the other hand, the cryptocurrency also draws many skeptics on Wall Street, including JPMorgan Chase  (JPM) - Get JP Morgan Chase & Co. Report CEO Jamie Dimon, who has called it a "fraud" in the past. 

However, more mainstream financial organizations are moving to adopt to cryptocurrencies. Earlier this year, Mastercard said it would start supporting select cryptocurrencies directly on its network.