U.S. cryptocurrency exchange Coinbase had confidentially filed a draft registration for a public offering to the Securities and Exchange Commission (SEC).
Coinbase Sent Draft Registration to the US SEC
On December 17, 2020, the exchange made the announcement on its blog, stating that the firm submitted a draft registration statement on Form S-1 with the SEC. The firm also clarified:
The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.
Plans of looking for an initial public offering (IPO) date back from July 2020. As news.Bitcoin.com previously reported, Coinbase Inc. was planning a U.S. stock market listing for later this year or early 2021, citing a Reuters report, although it’s not clear which stock exchange they are targeting.
The latest valuation put the U.S.-based crypto exchange at over $8 billion, and this move opens the doors for a future IPO for one of the biggest names in the crypto industry nowadays.
Speaking with news.Bitcoin.com, Meltem Demirors, Coinshares’ CSO, said that putting out a notice about a confidential S-1 filing is a 2020 move and has also been used by Affirm other firms. Also, he pointed out the fact that “the timing is especially fortuitous as BTC is breaching all-time highs.”
Demirors commented about what this Coinbase’s possible IPO means for the crypto community:
I believe that this will be a monster IPO and the first of many to come in 2021. This and future IPOs will further enable investors at both an institutional and retail level to get more pure-play exposure to crypto-assets.
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Other Major Crypto-Related Firms Trading Publicly
Another crypto heavy-weight company trading publicly is Canaan Creative, the manufacturer of ASIC mining rigs, which recently posted a net loss of $12.7 million on its Q3 financial results published on November 30, 2020. Canaan dominates the SHA-256 miners market globally, together with Bitmain, Microbt, and Ebang.
Looking ahead, Coinshares’ CSO believes that Coinbase’s IPO “will be the first meaningful exit, which means more allocation to crypto companies” in the future.
The U.S.-based crypto exchange didn’t provide further details as of press time about this announcement.
What are your expectations for the Coinbase IPO’s plans? Let us know in the comments section below.
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