Coinbase Files To Go Public Via Direct Listing

Cryptocurrency exchange Coinbase revealed documents to go public via direct listing on Thursday. It had already been tipped for a valuation of $100 billion prior to unveiling the documents.

Coinbase filed a registration statement on Form S-1 with the Commission. “Relating to a proposed public direct listing of its Class A common stock.”

The company plans to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “COIN.”

Traders on FTX appear bullish on Coinbase after the release of its long-awaited S-1. The pre-IPO contract was trading above $420 a share during Thursday’s morning session.

Traders on FTX who hold their pre-IPO shares will see those contracts convert into tokens after the direct listing.

The new S-1 also revealed new financials about Coinbase’s business. The company noted that it had 2.8 million “transacting customers” on its platform as of the end of 2020. That was an increase from the one million users it had at the end of 2019.

Coinbase additionally has been conducting secondary offerings on Nasdaq ahead of its direct listing. The firm’s almost recent secondary offering’s implied valuation stood at $100 billion.

Registration statement has been filed, but not yet effective

It’s worth noting that while the registration statement was filed, it has yet to become effective. “These securities may not be sold. Nor may offers to buy be accepted, prior to the time the registration statement becomes effective.” Coinbase said in a statement.

The company reiterated that its filing doesn’t “Constitute an offer to sell or the solicitation of an offer to buy any securities. Nor shall there be any sale of these securities in any state or jurisdiction.

“In which such offer, solicitation or sale would be unlawful prior to registration or qualification. Under the securities laws of any such state or jurisdiction.”

Coinbase filing documents contained letter from CEO Brian Armstrong

Coinbase’s filing documents contained a letter from founder and CEO Brian Armstrong. In the letter, he said the cryptocurrency market had the potential to upend the current financial system. Which he described as “rife with high fees, delays, unequal access, and barriers to innovation.”