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It’s official: Coinbase announces plans to go public via a direct listing

Updated: Aug 31, 2024
Published: Jan 28, 2021
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Coinbase has officially announced its plans to become a publicly-traded company via a direct listing. 

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The firm, arguably the biggest cryptocurrency exchange in the U.S., made initial steps to go public in mid-December last year after confidentially submitting a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC).

Coinbase going public

Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”),” the company wrote in a blog post.

The S-1 Form submitted last year will only become effective after the securities regulator completes its review process, subject to market and other conditions.

The exchange further said that “this announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.”

The exchange recently told its shareholders that it will launch a secondary market for its stock on Nasdaq Private Market.

Coinbase has come of age

The San-Franciso-based cryptocurrency exchange was founded in 2012 by Brian Armstrong and Fred Ehrsam.

In that same year, the company raised $25 million in funding from several venture capital firms such as Ribbit Capital, Andreessen Horowitz, and Union Square Ventures.

The company reached a milestone of 1 million users in 2014 and inked partnerships with Overstock, Expedia, Time Inc., Dell, and Dish Network.

In 2015, it raised $75 million and by 2017, the company generated $1 billion in revenue.

There were media reports in July last year that the company was planning to go public at the end of the year or in early 2021. 

Who else is going public?

A few weeks ago, Intercontinental Exchange-owned Bakkt announced its bid to go public via a merger with VPC Impact Acquisition Holdings, valuing the exchange of $2.1 billion.

Coinbase and Bakkt’s intentions to go public have come at a time when the cryptocurrency market is bullish thanks to capital inflows from institutional investors.

Bitcoin, which has become the yardstick to measure the sentiment of the market, is trading at $32,863, more than 8% up in the last 24 hours.

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