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Image Source: Coinbase
In significant milestone for the entire crypto industry, Coinbase Global Inc. filed for an initial public offering on Thursday. It is the first crypto exchange and the one of the most well-known cryptocurrency-centered company to opt for a public debut.
The company’s Class A common stock will be listed via a direct route on the Nasdaq Global Select Market. The stocks will trade under the ticker symbol COIN.
The direct listing will allow Coinbase to float its own shares on the exchange directly without any help from underwriters, banks or third-party intermediaries.
As per an official blogpost by the company, it has filed to go public with the US SEC, but it is yet “become effective”.
Nearly 2.8 million trade on Coinbase platform every month. The exchange boasts of over 43 million verified users. As per the filings released by the US SEC, Coinbase’s revenue shot up to US$1.3 billion in 2020 as the world witnessed a crypto rally. It booked profits of US$322 million. However, it incurred a net loss of US$30.4 million in 2019.
In a blog post, CEO Brian Armstrong calls Coinbase is a decentralized network “with no headquarters” and remote work environment.
Impact of Coinbase’s Listing
Coinbase’s debut comes amid rising doubts from mainstream investors who question the volatility of bitcoin and crypto’s potential for money laundering.
The listing in a way gives legitimacy to crypto world, allowing the flow of fund from both retail and institutional world. It will also bring new investors into the crypto fold in the long run.
World's biggest cryptocurrency bitcoin shot up by more than 300 per cent in 2020. This year, it touched a new high of US$58,354 and hit the US$1-trillion market capitalization mark.
Coinbase disclosed that has been putting bitcoin on its balance sheet since its inception in 2012.
(With agencies input)
