Coinbase has listed.

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Coinbase overview

Launched:
2012

Revenues:
Approximately $1.3 billion in 2020

Net income:
Between $730 million to $800 million


Founder:
Brian Armstrong and Fred Ehrsam


Users:
56 million


Supported countries:
100+

Coinbase IPO figures

IPO valuation:
$100 billion+

Number of shares:
114.9 million

Funding goal:
$943 million+

Coinbase IPO: Everything we know so far

Coinbase – the largest cryptocurrency exchange in the US – is set to list on the Nasdaq stock exchange on April 14 under the ticker COIN. The IPO price will be announced the day before on April 13.

Coinbase is going public via a direct listing. This means the company won’t be hiring an investment bank but will debut on the stock exchange by selling existing shares. The company’s directors and current shareholders will be offering their shares, no new shares are being created for the listing. On March 17, Coinbase published an amended S-1a form that stated the company plans to issue 114,850,796 shares of Class A common stock for a total price of $943,218,155.

Based on its shares sold recently in private markets, Coinbase is expected to generate a market capitalisation of over $100 billion. This valuation would make Coinbase among the top 20 most valuable financial services firms in the US – sitting among the likes of BlackRock, Morgan Stanley and Goldman Sachs.

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What next for Coinbase?

In its Q1 earnings estimates released on April 6, Coinbase announced plans to spend billions on scaling and marketing throughout the year to maintain its aggressive growth.

While its revenue figures released in the Q1 filing were impressive, in the IPO registration, CEO Brain Armstrong said consistent profits were a way off yet. The statement said: ‘We may earn money when revenues are high, and we may lose money when revenues are low, but our goal is to roughly operate at breakeven, smoothed out over time, for the time being.’

The major factors that will impact the growth of Coinbase and its share price will be the continued push for institutional adoption of cryptocurrencies, as well as the volatility that consumes Bitcoin markets.

Find out more about Coinbase and its strategy.

Why is Coinbase going public?

Normally when a private company lists its shares, it’s because it wants to raise additional capital. But Coinbase has decided against a traditional IPO in favour of a direct listing.

From this, we can assume that raising money isn’t necessarily at the front of Coinbase’s priorities. Instead, the company is giving its employees and existing investors an opportunity to sell their shares of stock to the public, which in turn gives more people a chance to buy into the company.

Who has invested in Coinbase?

Since its founding in 2012, Coinbase has raised a total of $547.3 million through 13 funding rounds. It’s received investments from a number of venture capitalist firms, including Union Square Ventures, Andreessen Horowitz, True Capital Management and Chainfund Capital.