After months of waiting and uncertainty, the Coinbase cryptocurrency exchange has finally received the green light from the US Securities and Exchange Commission (SEC) to list its shares in the Nasdaq Composite. After applying for an IPO in December last year, the crypto giant decided to debut on the stock exchange through a direct listing on April 1
Just a few days ago, Coinbase announced that it had hired Brett Redfern, a former SEC director, to run its business in the capital markets. Mr Redfearn’s hiring comes at a time of increased attention from lawmakers. As the exchange became public, its controversies in the past were also in full focus. Last week, the futures commission fined Coinbase $ 6.5 million for the stock exchange being accused by the CFTC of “reckless delivery[ing] false, misleading or inaccurate reports on digital asset transactions. ”
Is Coinbase’s assessment justified?
Through its direct registration, the company can be valued at more than $ 100 billion. Its astronomically high rating is largely due to its explosive growth. Coinbase generated total revenue of $ 1.3 billion and adjusted EBITDA of $ 527.4 million in 2020, representing annual growth of 240% and 2,200%, respectively. Its retail customer base also increased from 13,000 to 43 million between 2012 and 2020. As the technology sector and NASDAQ components trade at incredibly high levels, Coinbase’s estimate is reasonable to say the least.
In an amended submission of the S-1 to the SEC, Coinbase said it planned to sell 114.9 million shares through its direct public offering. Coinbase will trade under the COIN ticker, and its reference price will be available the night before the list. As for dividends, Coinbase has said it will not pay anything to its ordinary shareholders and intends to “keep all available funds and any future profits” for operations.
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