Coinbase Is Going Public: Everything You Need To Know

Coinbase, the largest crypto exchange in the United States, has filed with the Securities and Exchange Commission (SEC) to become a publicly traded company through a direct listing (rather than an initial public offering). Here's what you need to know:
Coinbase is a San Francisco-based crypto exchange that first opened in 2012. Founded by Brian Armstrong and Fred Ersham, the platform now has over 43 million users worldwide and has processed more than 456 billion US dollars to date - according to the latest filing with the SEC.
The story so far
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On January 28, the exchange officially announced its plans to go public via a direct listing on the Nasdaq, "following a proposed direct listing of its Class A common shares." This confirmed rumors from a Reuters report released last July that said the company was interested in a public listing.
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Initially, it was assumed that Coinbase would raise capital through an IPO. A process of creating new stocks and using the help of subscribers - usually banks - to promote them and market them to potential investors. Instead, Coinbase has decided to conduct a direct listing, also known as a Direct Public Offering (DPO), which essentially means excluding intermediaries and only selling pre-existing stocks. No new shares will be created.
This route offers three key advantages over going public:
It's much cheaper: companies that already have a strong market presence don't necessarily need the help of underwriters. A data protection officer drastically reduces the costs of going public.
The existing shares are not diluted: Since no new shares are created in the case of direct listings, there is a risk that existing employee and investor shares will not be diluted after the IPO. When diluted, newly created shares enter the market and lower the price of the existing shares.
It's a lot faster: by turning off middlemen, there are far fewer regulatory hurdles to overcome before going public, including filing underwriting contracts with the SEC.
In late 2020, Coinbase filed preliminary documents with the SEC that signaled the start of an IPO.
“Coinbase Global, Inc. announced today that it has confidentially filed a draft registration statement on Form S-1 with the Securities and Exchange Commission (the“ SEC ”). The Form S-1 is expected to take effect after the SEC completes its review process, subject to market and other conditions. "
Related Topics: The Heretic's Guide to the Bitcoin Debate, Feat. Brett Scott
On February 25, Coinbase's Form S-1 was officially released by the SEC. Citigroup, Goldman Sachs, and JP Morgan Securities were among the banks Coinbase selected to help them list.
What symbol are Coinbase shares traded under?
Coinbase Class A shares will be listed on the Nasdaq Global Select Market under the ticker COIN.
When will Coinbase COIN shares be listed?
No official listing date has currently been given. We will update this article as soon as it is announced.
Who can buy Coinbase COIN shares?
Since COIN shares are listed on the Nasdaq stock exchange, it means that anyone who has an account with a broker that trades US stocks can buy COIN shares. Similarly, investors can also buy COIN stocks through any mobile trading app that lists Nasdaq Global Select Market stocks.
It is not yet known how many COIN shares will be available or what the price of each share will be.
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Coinbase Goes Public: Everything You Need To Know
Coinbase Goes Public: Everything You Need To Know
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