Coinbase Global Inc. will trade on Nasdaq on April 14, after receiving approval for its direct listing from the U.S. Securities and Exchange Commission. While companies like Roblox, Spotify, Slack and Palantir have previously gone public through direct listings on the New York Stock Exchange, Coinbase will be Nasdaq’s first major direct listing. The largest U.S.-based cryptocurrency exchange will be trading under the ticker symbol COIN.
Coinbase plans on registering nearly 115 million shares of Class A common stock, under the ticker symbol COIN.
The U.S. SEC’s approval for the Nasdaq listing marks a milestone for cryptocurrency advocates, who are bullish on cryptocurrencies like bitcoin. Only recently have many traditional financial institutions and corporate players embraced the leading cryptocurrency, previously seen as too speculative and volatile.
The regulatory agency has approved the cryptocurrency firm for a direct listing. In a direct listing, no shares are sold in advance, unlike in initial public offering (IPO).
The issuing company forgoes selling new stock and instead allows existing stakeholders to sell their shares to new investors. The company’s share price will be determined by orders coming into the stock exchange.
In an updated filing last month, Coinbase revealed it had reached a $68 billion private market valuation at an average price of $343.58. While a company’s market valuation isn’t indicative of its share worth, Nasdaq will use that information to set a reference price ahead of Coinbase’s direct listing.
Coinbase is a cryptocurrency exchange for investors to buy, sell and hold cryptocurrencies such as Bitcoin, Ethereum among others. Founded in 2012, the company provides services for institutional and retail clients in the crypto markets.
With over 43 million customers, 7,000 institutions in more than 100 countries, the company brought about $1.3 billion in revenue in 2020 and an additional profit of $322 million.
As of December 31, 2020, the total value traded on the platform was over $456 billion and had stored over $90 billion worth of assets across their platform.