Coinbase, the crypto exchange giant, plans to sell stock ahead of its Initial Public Offering. Coinbase leaked the information by sharing with its shareholders that it will notify them of the private sale in the week. It plans to sell the shares at Nasdaq private market.
Coinbase is currently the biggest crypto exchange in the US and the largest crypto trading platform. According to Bituniverse exchange balance ranks, it has about $40 billion of BTC and ETH assets under its custody. When we combine all the digital assets, the exchange has about $90 billion in total.
During the end of 2020, Coinbase mentioned making an S-1 initial public offering with the US SEC. On Friday, as revealed with a columnist on the Block, the company plans to sell its shares ahead of the planned IPO.
Coinbase shareholders were informed that they would receive an email from the Nasdaq Private market on January 25 will all details on the IPO. They will get details on how they will access the market, what kind of shares they can trade, and what markets they will operate.
Coinbase plans to leverage on Goldman Sachs to run the IPO. There are also pre-IPO futures (CBSE)that plan to use the FTX exchange platform for trading. The Pre-IPO futures has generated interest, and so far, it is in high demand. The CBSE/USD markets on pre-IPO futures are retailing at $272 per unit. CBSE is a pioneer in tokenized stock markets on FTX and is better than Moderna, a vaccine company dealing with token stocks on FTX.
With Coinbase being big, many are curious to know its value after the IPO. According to an analysis done by Messari, the IPO can push its value to $28 billion. On the other hand, Block estimates the value of the company could reach $70 billion.
What the IPO means
Coinbase’s IPO has waited with so much anticipation. Through the IPO, people will know the company’s actual value and benchmark other crypto firms to evaluate themselves.
At the moment, it is hard to predict the amount investors will bet on the firm. The last formal valuation Coinbase did was in 2018, where it participated in $300 million Series E funding and was valued to be $8 billion. Without reasonable doubt, Coinbase is currently way more valuable than that. Cryptocurrencies have grown so much. In 2020 alone, BTC (Bitcoin) rose by about 300%, and the overall crypto market is over $1 trillion.
The company has about 35 million customers, which is a positive indication of the expected IPO.
Many investors have found the Coinbase IPO to be controversial. For starters, people are eyeing the SEC’s move regarding the IPO. Many regulators treat Coinbase as a litmus test that will shape their future moves if they need to take the same move.
Coinbase has been in the light with regulator interference before, and in case the SEC gets in the way; it will know how to deal with it. Coinbase has also had issues with SEC before. That is why people were expecting the rumored pre-IPO to be treated with red tape by the SEC.