Coinbase Will Go Public Via Direct Listing: Latest Report

Coinbase will go public through direct listing instead of an Initial Public offering because it prefers the way following the steps of Spotify and Slack so let’s read more in our latest Coinbase news.

The biggest US-based crypto exchange Coinbase will go public via a Direct public listing of its Class A common stock. The company expects the Form S-1 filed with the US EC to become effective after the commission is finished reviewing.
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The company submitted a draft registration with the SEC to go public with an initial public offering but the early estimations suggested that the company’s potential valuation sits at $30 billion.

The exchange released an update of the futures plans which contains a little twist because instead of going with the traditional process of relying on investment banks to set the prices and line up for the buyers of the shares, Coinbase plans to go for a proposed direct listing of its Class A common stock as CFO Alesia Haas noted:

 “We believe a direct listing more closely follows the ethos of crypto and Coinbase because it democratizes access and opportunities for all investors.”

Direct Public Listings operate as IPO alternatives. During the DPOs the company does not rely outside of the capital as the employees and investors are able to convert their ownership into stocks that are listed on the stock exchange. Before the listing, the general public including retail investors will purchase or dispose of their positions without the “lock-up” period of a traditional IPO. Spotify and Slack are among the most prominent companies that went through a DPO instead of an IPO. After Coinbase announced the intentions to go public, a few other crypto-related companies have similar plans.

Bakkt which is operated by the Intercontinental Exchange was the first to do so as the statement highlighted the merger and said that Bakkt estimated an enterprise value of $2.1 billion. The Winklevoss twins who are the co-founders of another US-based exchange Gemini also seemed quite keen on the idea. In a recent interview, Tyler and Cameron said that they considered going public with conversations within the company on whether it makes sense at this point.