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- Coinbase is all set to mark its debut on Wall street via the direct listing route.
- NASDAQ has set the reference price of US$250 per share for Coinbase listing.
- It will have approximately 261.3 million shares outstanding when it goes public.
One of the most popular cryptocurrency exchanges, Coinbase is all set to mark its debut on Wall street. The shares of the company will be listed on the NASDAQ on 14 April under the ticker name “COIN”.
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The company disclosed Tuesday afternoon that it will have approximately 261.3 million shares outstanding when it goes public. The 261.3 million figure includes all Class A and B shares, plus all outstanding stock options and restricted stock units.
Class A and B shares are identical, the only difference being that class B shares have greater voting rights and are convertible to class A shares by the holder at any point in time.
The company is going public via an eagerly awaited direct listing route on Wednesday, shying away from the traditional route of IPO.
Normally, underwriters weigh investor interest and set a stock's IPO price the evening or morning before the company goes public. But that's not the case with Coinbase because the firm has skipped the traditional IPO process.
The direct listing route means instead of raising cash by selling new shares to a group of institutional investors, Coinbase is allowing existing stakeholders to start selling immediately at a market-driven price.
For this, NASDAQ has set Coinbase’s reference price at US$250 per share for direct listing, valuing it at around US$65.3 billion.
How does the company earn revenue?
The exchange generates its core revenue by charging a nominal fee on all the transactions made on the platform. This fee varies from region to region and from currency to currency. Coinbase is available for transacting in cryptocurrencies across 100 countries, including the United States of America, Canada, India, and others.
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However, Coinbase’s revenue is not just limited to the fee it charges. It also generates its business from offering various products including its most talked-about product, Coinbase Card. It allows Coinbase customers to spend their cryptocurrency balance at any place that accepts Visa cards. Along with this, the company also earns revenue from its Pro platform and software services.