Cryptocurrency Exchange Coinbase Files S-1 Form With SEC for Potential IPO
After months of speculation, Coinbase, the largest cryptocurrency exchange in North America, has confidentially filed for a public listing. Per an official blog post from the exchange, Coinbase revealed that it had completed its S-1 Filing and shipped it off to the Securities and Exchange Commission (SEC).
Not There Yet
The company pointed out that the filing will be effective following a review from the regulator.
The SEC Form S-1 is the initial registration form for companies planning on floating their IPOs to register their securities with the SEC.
It's a prerequisite for companies before they list on any of the country’s stock exchange platforms. It contains details such as planned use of capital proceeds, company business model, and competitors. The form also features details like the methodology for arriving at the offering price and possible dilutions to other listed securities.
The Crypto Space is Ripe for IPOs
This isn’t the first time that Coinbase will be linked to an imminent IPO. In July, Reuters reported that the company was working towards a public listing, which would occur either later this year or in the first half of 2021.
At the time, Coinbase was looking to hire investment banks and law firms to guide the exchange in the process. It was also reported then that the company was considering a direct listing, which offers the opportunity of selling existing shares without offering new ones. Direct listings have become popular recently as an alternative to the traditional IPO.
Coinbase’s filing couldn't have come at a better time considering Bitcoin's recent rally. BTC broke its all-time high yesterday and has sat pretty above the $20,000 mark since then. With the leading cryptocurrency – as well as several other large-cap assets – expected to maintain their hot streak for the next few weeks, the crypto market is as vibrant as it has ever been.
Coinbase isn’t the only crypto-facing company that is working towards a possible listing. As Bitcoin Exchange Guide reported this week, Robinhood, the renowned crypto-friendly trading platform, had also made significant progress in pushing for a public listing. Robinhood had tapped Wall Street investment bank Goldman Sachs to lead the public offering, with the firm hoping to list in the coming months.
Robinhood plans to raise about $20 billion in its IPO valuation. Subject to market conditions, the Menlo Park-based company hopes to get on with the listing as soon as possible in 2021.
CB IPO gets more eyes on Bitcoin and crypto
With more crypto adoption this probably does well over time
Shows how much potential there is with investing in crypto start ups (high risk & high reward)
I'd personally rather put more money in Bitcoin or start ups than IPOs https://t.co/y39fyNzUrl
— Josh Rager 📈 (@Josh_Rager) December 17, 2020