Coinbase Goes Public Via Direct Listing!
The company reported a tremendous growth in net revenue in 2020 and a total revenue that more than doubled compared to the same period of the previous year.
Coinbase, the largest crypto exchange platform in the US, submitted its official statement to the Securities and Exchange Commission to go public via direct listing.
The platform, which enables investors to buy and sell Bitcoin (CRYPTO: BTC) and derivative digital assets, wants to generate up to $ 1 billion in revenue with this move. According to various media outlets, this value can reach up to $ 100 billion.
The plan is for the company to appear on the NASDAQ!
By choosing to go public through direct listing, it will convert the shares of existing investors and employees to the company and sell it to the public.
The direct listing method essentially allows retail investors to purchase shares at the same time as institutional investors. This is a cheaper method for the company.
Coinbase’s registration statement showed that the company earned more than $ 322 million in net income in 2020 from a total revenue of $ 1.28 billion.
Close to $ 1.1 billion of Coinbase’s 2020 revenues came from transaction fees, while the rest came from subscription and other services.
The company currently has 43 million retail users, 7,000 organizations and 115,000 ecosystem partners in more than 100 countries.
We think the decision to go public through listing fits well with the Coinbase brand.
The platform helps traders gain access to decentralized assets. Considering that digital assets originally emerged to help people escape from the traditional financial system, a traditional IPO wouldn’t exactly fit Coinbase.
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