Bitcoin surged dramatically on Thursday after Coinbase, one of the world’s largest cryptocurrency exchanges, filed to go public via a direct listing on Nasdaq, adding fuel to the ongoing crypto boom among institutional investors and corporates.
The US-based company noted that it expects to incur higher operating expenses in the foreseeable future. That may hamper its ability to achieve profitability in absence of adequate cash flows consistently. Therefore, to achieve substantial liquidity, it is going to list its Class A Shares in public for sale and purchase.
“Our business and operations have experienced significant growth, and if we do not effectively manage our growth, or are unable to improve our systems and processes, our operating results will be negatively affected,”
wrote Coinbase in its S-1 filing with the Securities and Exchange Commission.Coinbase revealed that it generated a net income of $322.3 million in 2020. But in 2019, the firm faced losses worth $30.4 million. Overall, it earned a net revenue worth $3.4 billion since inception, subsequent to the growth in the cryptocurrency markets.
Investors pointed to the filing as a breakthrough moment in the crypto space. Many anticipated that it would lead to further higher adoption for cryptocurrencies like Bitcoin as Coinbase would offer institutional investors an indirect exposure to the volatile market via its shares.
“If [traditional investors are] more comfortable investing in stocks and putting their money behind a company with cash flow, a board of directors, and the whole traditional infrastructure, they’ll appreciate the opportunity to bypass crypto volatility and invest in Coinbase stocks instead,”
Chris McAlary, CEO of bitcoin ATM operator CoinCloud, noted.BTC/USD surged above $51,000 after the Coinbase news entered the wire. It was targeting an extended bull run above $51,500 but met with a moderate selling pressure near the area.
Earlier in the week, Bitcoin was wobbling between $47,000 and $52,000 after crashing from its record high above $58,000. Analyst now expects the cryptocurrency to log another bull run towards its previous peak.
I’ve read several posts on this topic, but yours stands out for its clarity and actionable advice. Thank you for putting in the effort to create such a helpful resource. Can’t wait to share this with my network!
Your blog never disappoints! This post, in particular, provided a fresh perspective, and I really enjoyed reading it. Looking forward to more great content!
Your passion for the subject shines through in every paragraph. It’s refreshing to find content that’s both educational and enjoyable to read.
I love how you cover this topic with such depth and clarity. It’s evident that you put a lot of effort into researching and presenting this information. Well done!
Your ability to explain things in such an engaging and easy-to-digest manner is remarkable. I really appreciate the effort you put into this post!
You consistently produce high-quality content, and this post is no exception. Your ability to make learning enjoyable is truly inspiring!
This was such a refreshing and insightful read! Your writing is engaging, and the content is packed with practical advice. I can’t wait to see what you post next!
I’m always impressed by how you simplify complex concepts without losing depth. This post is another winner—informative, well-organized, and easy to apply. Thanks for sharing your wisdom!
Thanks for the valuable post! Hey did you know about this? You can craft high-quality content with just one click, tailored specifically to your brand’s voice and target audience. Create and publish your content all in one platform By MAVIC. VIsit the link.
… [Trackback]
[…] Information on that Topic: coinchapter.com/bitcoin-price-rises-after-coinbases-breakthrough-filing-to-go-public/ […]
… [Trackback]
[…] Read More on that Topic: coinchapter.com/bitcoin-price-rises-after-coinbases-breakthrough-filing-to-go-public/ […]
… [Trackback]
[…] Info on that Topic: coinchapter.com/bitcoin-price-rises-after-coinbases-breakthrough-filing-to-go-public/ […]