Listing method finalized! Coinbase announcement said it would go public
An encrypted currency exchange Coinbase published an announcement through an official blog, saying it plans to list directly.
Coinbase said in the announcement,
Coinbase will become a listed company according to the direct listing plan of a common shares. Such listings are expected to be based on the Securities and Exchange Commission (SEC) S-1 registration form.
Coinbase previously announced the submission of a S-1 form registration statement to SEC on 17 December 2020. S-1 form is expected to take effect after the SEC has completed the review process, based on market and other conditions.
It is understood that direct listing, also known as direct public offering (DPO), is a way to make a company’s shares publicly traded but without the help of banks to do initial public offering (IPO), companies do not have to cooperate with investment banks to underwrite issued stocks. Famous music service app Spotify also landed directly on the nyse in 2020.
A direct listing is not like an initial public offering to raise capital, but a company’s employees and investors convert their ownership into shares and then list them on the stock exchange. As soon as the stock is listed, the public can buy shares, while existing investors can cash it at any time without having a lock-in period like the traditional IPO.
According to earlier reports, just earlier this week, Coinbase also published its latest operating data on the official website.
As of December 31,2020, Coinbase assets on the platform exceed $90 billion, More than 4 registered users 3 million. Coinbase managed assets account for more than 50 per cent of the total of $90 billion “, Coinbase executed more than $1 billion in single deals for “some of the world’s largest institutions “.
Polychain ceo, former Coinbase employee Olaf Carlson-Wee mentioned his views on Coinbase listing in an interview with encrypted media.
This is a real hard-core financial services company with hundreds of millions of dollars in revenue. Even if you don’t have bitcoin, there are no encrypted assets. And you will understand what business is, and you will understand Coinbase is a very good business.
Coinbase is likely to be one of the largest companies listed in 2021, according to a valuation of more than $60 billion in Coinbase.