Towards a record IPO for Coinbase? The Bitcoin and cryptomoney giant wants its place on the stock market

Towards a record IPO for Coinbase? The Bitcoin and cryptomoney giant wants its place on the stock market

Holger Dezember 2020

A crypto stock exchange soon in … stock exchange? – On Thursday, December 17, Coinbase announced, on its Twitter account and on its blog, the filing of Form S-1 with the SEC. This document expresses its desire to be listed on the stock market. According to the firm, the document will become effective as soon as the SEC completes its review.

A favorable context for listing…

Coinbase is now considered to be the most important crypto stock exchange in the United States. Several services are offered, aimed at both individuals and professionals (Coinbase and Coinbase Pro). There are currently 40 encryptions available on the platform, and this number is growing every day. The company is valued at $8 billion and has 35 million users in 100 countries.

At the same time, Bitcoin Evolution broke the $20,000 mark on Wednesday to reach a new record of $23,700. This growth was mainly due to the massive arrival of individual customers, but mainly institutional customers.

The introduction of Coinbase therefore comes at a key moment, when prices and trading volumes are very high. This is a godsend for the crypto-market, which derives most of its revenues from brokerage fees and commissions.

… but nothing is ever certain!

At this stage, the SEC has not yet ruled on the Coinbase case, and the application could very well be rejected. Nevertheless, the company could pursue its objective through a direct listing, in which it would sell its shares directly to the public. This solution has recently been used, notably by Spotify and Slack.

Coinbase has also been affected in recent months by questions about the treatment of its employees. In late 2018 and early 2019, the company experienced a departure of 15 black employees. At least 11 of them had informed the human resources department or their managers of what they considered racist or discriminatory treatment.

If the SEC gives its approval, Coinbase will be the first U.S. crypto stock exchange to go public (classic). This is an important milestone for the crypto-cash industry. Some analysts even anticipate record profitability if the project comes to fruition.