Coinbase is going public through an IPO

  • Coinbase has filed for an initial public offering just after the price of Bitcoin skyrocketed
  • The US major crypto exchange’s filed form was confidential
  • It is yet unclear whether Coinbase will go public via an IPO or direct listing

Coinbase, the largest cryptocurrency exchange in the United States, has recently filed for an initial public offering (IPO). The digital exchange plans have rolled out as the renewed investor’s interest in cryptocurrency has urged to increase the price of Bitcoin to make new all-time highs. The confidential submission of the draft registration statement on Form S-1 with the Securities and Exchange Commission was held yesterday. 

Coinbase’s valuation seems to be significantly higher

The cryptocurrency exchange has been the subject of IPO speculation for several months. The announcement has just arrived as the price of Bitcoin skyrocketed towards $23,000. Back in October 2018, Coinbase was valued at $8 billion. Observing the increase in the price of the crypto token designed by Satoshi Nakamoto and the current demand for IPOs, it seems like the valuation of the major US crypto exchange will be significantly higher. 

Coinbase has confidentially filed the draft registration statement

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It is found that Coinbase has confidentially drafted the registration statement with the US SEC. Indeed, that is the first formal step on the long road for Coinbase to an IPO. After getting approval from the US SEC, the Form S-1 is expected to go into effect. However, at writing time, the document that includes the target raise was not available. The contents won’t be made public until three weeks before Coinbase’s roadshow, as the filed form is confidential.

Will the exchange go public via direct listing or IPO?

It is observed that the major US crypto exchange has not clarified whether the firm will go public directly or through an IPO. The first report of the exchange exploring a stock market listing was reported by Reuters back in July. Indeed, several anonymous sources told the wire service that the digital exchange was looking at a direct listing, rather than an IPO. According to a blog release from Andreessen Horowitz, a key investor of Coinbase, both ways of getting public requires the same form filed by the exchange.

Coinbase’s institutional operations are growing faster

The crypto exchange is a major hub for retail Bitcoin traders and a gateway for alternative virtual currencies. Compared with MicroStrategy’s sats pile, it is observed that the exchange’s institutional business is growing rather faster. Coinbase has an analytics team, a stablecoin in partnership with Circle, a venture arm, and a commerce department, all seem to be appealing for exposure to the crypto markets.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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