Coinbase’s stock has proven just as volatile as the cryptocurrencies it stores for investors.
In fact, crypto investors often use the acronym HODL — hold on for dear life — when talking about riding out the steep plunges that punctuate the crypto market roller coaster.
When Coinbase held its initial public offering (IPO) on April 14, 2021, the market cheered it with much fanfare. The mood was euphoric. Many investors saw it as crypto’s coming-of-age moment, with a major exchange going public.
So how would a $1,000 investment in COIN have performed in the three years since?
Also see how much a $1,000 investment today in Bitcoin would be worth in six years.
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How Much a $1,000 Coinbase IPO Investment Is Worth Today
Coinbase set a reference price of $250 entering the IPO, but the stock opened far higher at $381. That first day, it peaked at $429.54 before plummeting back down to close at $328.28.
As of this writing, COIN trades at $218.08. That marks a 42.76% drop from its opening price and a 33.57% drop from its closing price.
If you’d bought $1,000 of COIN stock at the opening bell, that would leave you 2.62 shares. Today those shares are worth $572.39.
Coinbase does not pay a dividend.
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Coinbase vs. the S&P 500
How has the stock market as a whole performed since April 2021?
An index fund tracking the S&P 500, SPY, closed April 14, 2021 at $411.45. At the time of this publication, it’s trading at $499.52. It gained 21.40% over roughly three years, around a 7.1% average annual growth rate.
Adding insult to injury for Coinbase investors, the S&P 500 pays a dividend. The dividend yield for SPY has hovered between 1.24% to 1.64%. That puts the total average annual return for SPY around 8.5% in the three years since Coinbase’s IPO.
Is Crypto Winter Behind Us?
Cryptocurrencies saw such a miserable 2021 and 2022 that investors referred to it as “crypto winter.” Note the implied optimism among HODL-ers: winters always end sooner or later.
On the day of Coinbase’s IPO, Bitcoin hit a daily high of around $64,863. By November 2022, it had collapsed to $15,788.
But in the…
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