One of the biggest Celebrity Net Worth stories of 2021 was the phenomenal rapper who likely stumbled thanks to an early investment in Coinbase. According to reports at the time, including our own, Nas was likely to make more than $100 million when Coinbase went public in April 2021.
Investing through his venture capital firm, QueensBridge Ventures, Nas first invested in Coinbase in 2013, as part of the company’s “Series B” funding round. That round raised $25 million at a valuation of $143 million.
QueensBridge typically invests between $100 and $500,000 when it participates in a private funding round. Using this range, one can infer that QB was able to secure 100,000-500,000 shares of Coinbase thanks to this investment nearly a decade ago.
When Coinbase went public on April 14, 2021, it finished the first day of trading at $342 per share. At this level, the supposed value of 100-500 thousand shares was between …
34 and 171 million dollars
An absolutely unbelievable return on an investment that is supposed to be between $100 and $500,000. And who knows? Coinbase may be on the cusp of becoming the next Google or Apple and soon Nas will be getting a billion dollar fortune in crypto stocks.
Unfortunately, it turned out that this was not the case until now.
Coinbase stock is down 83% from its all-time high, including a 25% drop in just the last 24 hours.
So, I’m really, really, really hoping that Nas decided to sell sometime last year.
(Photo by Roman Morris/Getty Images for Carbone Beach)
After struggling between May 2021 and October 2021, Coinbase’s stock price soared from around $230 to $342 for its IPO by mid-November. Unfortunately, as of this writing, this seems like the absolute peak before the very severe fall.
Coinbase closed Monday at $103 a share. On Tuesday, it closed at $73 per share. On Tuesday afternoon, Coinbase released its quarterly earnings report. It was ugly to say the least. Transaction volume is declining. High costs. Revenue was missing. The company is implementing a hiring freeze. At the time of writing this article, Coinbase fell to $61.55 in after-hours trading.
At $61.55 per share, if Nas still owns the assumed 100-500 thousand shares in Coinbase, the value of those shares would be between…
6 dollars and 30 million dollars
There’s still an impressive return, but if the $6 million range is correct, it “only” means about $4 million after taxes if he sells today. This is a far cry from the staggering $100 million windfall we so desperately wanted to be real a year ago.
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