Coinbase Files To Go Public On Nasdaq Via Direct Listing
Leading cryptocurrency exchange Coinbase has filed to go public on Nasdaq via a direct listing. This sets the stage for a landmark listing for the U.S cryptocurrency exchange and a first for the blockchain industry.
Filing Reveals Key Details On Coinbase
This development was revealed by the U.S media outlet platform Reuters on February 25. According to the report, the exchange has disclosed its regulatory filing to the U.S financial regulators, paving the way for its listing on the U.S stock exchange.
Further information released by the block director of research Larry Cermak revealed more details about the filing. According to the S1 notes, Coinbase stated that its platform had 43 million verified users and 2.8 million monthly transacting users. This is more than the 30 million verified users initially speculated by the crypto media some months ago.
The U.S exchange made a total revenue of $3.4 billion from its inception until 2020. As expected, transaction fees accounted for 96% of the net income, with the company making a net profit of $322.3 million in 2020. Coinbase also made most of its revenues from customers in the United States 76%, which equated to $966 million in 2020.
The key business metrics that will attract investors is the $90 billion worth of crypto assets on the platform. This is massive and suggests that Coinbase could be the largest crypto exchange in the world.
Coinbase on Nasdaq
Coinbase initially revealed its intentions to file an IPO listing with the U.S Securities and Exchange Commission (SEC) in December. However, the company decided to a direct listing on Nasdaq. In general, a direct listing is an attractive option for a company with a well-established brand looking for liquidity for its stakeholders. Unlike an IPO, a direct listing does not involve the creation of new shares.
Coinbase will join several well-known companies such as Netflix, PayPal, Amazon, and Apple on Nasdaq. This listing on the second-largest stock market will allow institutional investors to gain more exposure to the crypto industry.