Coinbase will now trade on the Nasdaq under the ticker COIN. During preliminary trading on the Nasdaq Private Market, the company’s capitalization amounted to more than $ 100 billion. Coinbase shares, traded as contracts on the FTX exchange, after the listing announcement, climbed 10% above $ 420. However, the public price of the shares at which the securities will start trading on the Nasdaq is determined by the pricing committee. Financial advisors during the listing will be Goldman Sachs, JP Morgan and Citi.
Information from the registration application
The S-1 registration application has become available to the public. It contains detailed information on the financial performance of the exchange, as well as a presentation for investors.
The exchange notes that it has achieved outstanding growth over the years with minimal external funding and marketing costs.
Among other things, first of all, it is worth highlighting the company’s revenue for 2020 – $ 1.1 billion. For comparison, in 2019 the figure was $ 482.9 million. At the same time, the costs of the exchange’s operating activities in 2020 amounted to $ 868.5 million. Thus, the company’s net profit for 2020 year – $ 322.3 million. And in 2019 it lost $ 30 million.
“Since our inception, we have grown quickly and efficiently”, said the management of the exchange.
However, the exchange expects their operating expenses to increase significantly in the foreseeable future and they may be unable to achieve profitability or positive cash flow from operating activities on an ongoing basis, which could adversely affect business, operating performance and financial conditions. Therefore, the exchange considered it necessary to become a public company.
A big day for Coinbase
Coinbase announced its plans to become a public company through a direct listing back in late December. The average time for the SEC to respond to a public presentation of the S-1 is about a month. On February 25, the SEC approved the application, thus giving permission for the exchange to go public. Thus, February 25 is a momentous day for both Coinbase itself and the cryptocurrency community.
The S-1 registration application is an important moment in the life of a private company going public. S-1 allows not only to present the financial performance of the exchange, but also how the company positions itself, what it sees its prospects and how it assesses risks, which is important information for potential investors.
Coinbase is the leading US crypto exchange and one of the top worldwide. It was founded back in 2012 and since then has gathered millions of users around it, and has also attracted hundreds of millions of venture capital from the largest investors in Silicon Valley.
In addition, Coinbase is a bridge between traditional companies and cryptocurrencies, as it allows you to securely access a new class of digital assets. So, earlier it became known that it was Coinbase that helped Tesla, MicroStrategy and some other large companies buy Bitcoins.
Coinbase isn’t the only company looking to go public
Coinbase isn’t the only cryptocurrency company looking to go public. Bakkt (a subsidiary of Intercontinental Exchange) pursues the same goal. Interestingly, that Intercontinental Exchange is the parent company of Nasdaq, but Bakkt wants to list their company on the rival NYSE.
And one more interesting point. Coinbase’s public S-1 registration application was also sent to Bitcoin creator Satoshi Nakamoto.