InvestFond from the United States was able to unusually earn the growth rate of Bitcoin, invested in Coinbase several years ago, writes CNBC. Initial investment rose 920 times.
Union Square Ventures Foundation has acquired a share in Coinbase in 2013. By the time the Fred Wilson Managing Foundation had a reputation as a fortunate investor in technological companies. Among his additions were the social networks Twitter and Tumblr in the early stages of their development, which made it possible to extract profits from the further growth of their cost.
Wilson decided to buy a share in Coinbase at the stage of attracting venture capital costs worth five million dollars – price of 20 cents per share and evaluating the entire company in 20 million. Coinbase specializes in the organization of trading in cryptocurrents, mainly Bitcoin and Etherium, and also provides users with storage services cryptocurrency in special wallets.
Wilson’s decision was explained by the fact that he himself was a Coinbase client and bought bitcoins through this platform. In the future, the popularity of the company grew, and in 2021 she announced the exit to the NASDAQ Exchange. The total cost of CoinBase on the first day of trading on April 14 was estimated at $ 100 billion (hypothetical assessment, provided that all options, warrants, convertible obligations and other derivatives will be converted into stocks). It became a record for the American market and allowed her to enter the number of 75 most expensive US companies.
Compared to 2013, Coinbase costs rose five thousand times. The share of Union Square Ventures is now estimated at $ 4.6 billion, which exceeds the initial investments in 920 times. This, however, does not mean that the profitability of the Foundation was exactly 92 thousand percent, since his share was changed during possession.
Nevertheless, the publication calls Union Square Ventures by the main beneficiary of coinbase success – at the expense of investments at an early stage. At the same time, analysts warn that the growth of company quotes directly depends on the cost and popularity of Bitcoin, which remains very volatile (variable) asset. Thus, in the increase in prices of coinbase shares there are signs of the “bubble”.