The US-based crypto exchange Coinbase has disclosed its regulatory filing to go public. Instead of a traditional IPO, Coinbase has opted for a direct public listing where no new stock is sold and only the existing shareholders can sell the stock. The crypto exchange initially applied to go public with the U.S. SEC confidentially.
Coinbase has planned to list its shares on the Nasdaq exchange under the ticker symbol "COIN." Goldman Sachs Group Inc., JPMorgan Chase & Co., Allen & Co., and Citigroup Inc. will be advising on the transaction.
As revealed in the regulatory filing, the company won’t raise any proceeds in the transaction. Among the potential risk factors that could affect the listing plans, the cryptocurrency exchange has listed the volatile nature of cryptocurrencies as the main concern.
The filing read:
“If demand for these crypto-assets declines and is not replaced by new demand for crypto assets, our business, operating results, and financial condition could be adversely affected.”
Coinbase could be the first major direct listing to take place on Nasdaq. The previous ones include Spotify Technology SA, Slack Technologies, Asana, and Palantir Technologies, which were listed on the New York Stock Exchange.
Coinbase has 43 million verified users from more than 100 countries of which 2.8 million use transact on the platform monthly accounting for $455 billion in trades and $90 billion in assets on the platform.
Coinbase’s revenue has more than doubled last year from 2019 into profit. In 2020, the company reported a net income of $322 million on net revenue of $1.14 billion compared to a net loss of $30 million on revenue of $483 million a year earlier.
Founded in 2012, Coinbase has raised more than $500 million from backers that include Andreessen Horowitz, Y Combinator, and Greylock Partners. The crypto firm was valued at more than $8 billion in 2018 after a $300 million funding round led by Tiger Global Management.