One of many greatest Movie star Internet Value tales of 2021 was the large windfall rapper Nas doubtlessly snagged thanks an early funding in Coinbase. In line with studies on the time, together with our personal, Nas was potentially in-line to make over $100 million when Coinbase IPO’d in April 2021.
Investing via his enterprise capital agency, QueensBridge Ventures, Nas first invested in Coinbase again in 2013, as a part of the corporate’s “Sequence B” funding spherical. That spherical raised $25 million at a valuation of $143 million.
QueensBridge sometimes invests $100 – $500 thousand when it participates in a non-public funding spherical. Utilizing that vary, one might extrapolate that QB was in a position to safe 100,000 – 500,000 shares of Coinbase because of that funding almost a decade in the past.
When Coinbase went public on April 14, 2021 it ended its first day of buying and selling at $342 a share. At that stage, Nas’ presumed 100-500k shares had been price between…
$34 and $171 million
A completely unimaginable return on a presumed $100-500k funding. And who knew? Possibly Coinbase was about to be the following Google or Apple and shortly Nas can be sitting on a billion greenback crypto inventory fortune.
Sadly that turned out to not be the case, up to now.
Coinbase inventory is down 83% from its all-time excessive, together with a 25% drop in simply the final 24 hours alone.
So, I actually, actually, actually hop Nas determined to promote in some unspecified time in the future within the final 12 months.
After struggling between Might 2021 and October 2021, Coinbase’s share worth climbed from round $230 again as much as its $342 IPO stage by mid-November. Sadly, as of this writing, that’s wanting just like the completely peak earlier than a particularly precipitous fall.
On Monday Coinbase closed at $103 a share. On Tuesday it closed at $73 a share. On Tuesday afternoon, Coinbase launched its quarterly earnings report. It was ugly to say the least. Transaction quantity is down. Prices are up. Income was a miss. The corporate is implementing a hiring freeze. As I kind this text, Coinbase has slumped to $61.55 in after hours buying and selling.
At $61.55 per share, if Nas nonetheless owns a presumed 100-500k Coinbase shares, these shares are price between…
$6 and $30 million
Nonetheless a formidable return, BUT if the $6 million vary is right, that is “solely” round $4 million after taxes if he offered at this time. That is a reasonably far cry from the wonderful $100 million windfall we needed so badly to be true a 12 months in the past.