Coinbase filed to go public via direct listing on Nasdaq Inc. last week. Coinbase runs the largest cryptocurrency exchange in the U.S. and is now preparing for an IPO. It is expected to be one of the highest this year, as the expectation is that the valuation will surpass $100 billion. As reported last year, Coinbase is banking on getting a direct listing. This ensures that all investors will have a shot at the offering price to get shares and that the price will likely not have a massive jump.
“We provide hedge funds, money managers and corporations a one-stop shop for accessing crypto markets through advanced trading and custody technology,” the company said in the filing.
— Caitlin Long 🔑 (@CaitlinLong_) February 25, 2021
Coinbase now has 43 million retail users and 7,000 enterprise clients on its site, there are 115,000 partners in more than 100 nations, too. Coinbase may be the hottest ticket on the market today due to its exposure to the consumer, fintech, bitcoin, defi, and IPO market. The firm has also listed its shares on the NASDAQ Private Exchange and is scheduled to become public in a direct listing.
In the company’s disclosure papers, Founder and CEO Brian Armstrong included a letter detailing the company’s vision. “Coinbase is a company with an ambitious vision: to create more economic freedom for every person and business. Everyone deserves access to financial services that can help empower them to create a better life for themselves and their families, but today we are a long way from this vision”.
He further added, “The current financial system is rife with high fees, delays, unequal access, and barriers to innovation. In many countries, citizens don’t have access to sound money, a functioning credit system, or even basic property rights. If the world economy ran on a common set of standards, that could not be manipulated by any company or country, the world would be a more fair and free place, and human progress would accelerate”.
As per Yahoo Finance, recently, it was announced that Coinbase helped promote Tesla Inc (NASDAQ: TSLA) $1.5 billion Bitcoin acquisition. Institutional client assets rose 590 percent from fiscal 2019 to fiscal 2020.
President and CEO of Noble Gold Investments Collin Plume said “The platform won’t win an aesthetic design award but it is user friendly. You can go in there with absolutely no idea about trading or crypto and get started in five minutes. You really can’t get 43 million users with a platform that requires a tutorial to use. Blame it on Facebook or Google but the digital world is filled with impatient and busy people who are used to getting what they want with nothing more than a click. Coinbase made trading easy.”
About Coinbase Revenues & Controlling stake
Founded in 2012, Coinbase has revenue of $1.3 billion in fiscal 2020, up from $533.7 million recorded in fiscal year 2019. As per Yahoo Finance, Coinbase receives the bulk of its income from transactions with cryptocurrencies. Transactions accounted for 96 percent of sales in 2020. Subscription revenue amounted to $45 million in fiscal 2020, up 126 per cent year-over-year. Other sales amounted to $136.3 million in fiscal 2020, up 168 per cent year-over-year.
In terms of Executives Control Vote, Coinbase Co-Founder and CEO Brian Armstrong controls 21.7% of the voting power for Coinbase, Marc Andreessen has 14.3% of the voting power. In total Coinbase executives and directors control 54% of the voting power for the company.
— Fyggex (@fyggexchange) March 1, 2021
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