Coinbase, the largest US crypto exchange had earlier announced its plans of going public in the first quarter of 2021 and has finally come out with the details of its public listing. The exchange revealed that they would be opting for a direct listing in an official blog post.
Coinbase, the biggest exchange for cryptocurrency in the U.S., said it plans to go public through a direct listing, making it the latest company to forgo the traditional public-offering process https://t.co/22A0g4e4Uk
— The Wall Street Journal (@WSJ) January 28, 2021
Coinbase Global, Inc. today announced its intent to become a publicly-traded company under a proposed direct listing of its Class A common stock. Such proposed listing is expected to be under a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
The rumor mill suggests that the firm is targeting a share price of $200 in its IPO. A direct listing generally does not involves the investment bank that sets the price for the market. The firm’s decision reflects their confidence and will to discover the price of their shares and they have already announced that they would be offering their stocks in a secondary market for company employees and other forums.
Alesia Haas, the CFO of the firm wrote a memo explaining the decision to go for a direct listing and wrote,
“We believe a direct listing more closely follows the ethos of crypto and Coinbase because it democratizes access and opportunities for all investors,”
Coinbase Looking to Enter Public Market With Crypto Ethos
The decision to go for a public listing to cut short the involvement of investment banks who benefit the most from these listing is seen as a brave move by the exchange where many believed Coinbase is looking to emulate the decentralized ethos in its new journey as a publically traded company.
Coinbase was among the very first crypto companies to announce its decision to go public back in December in what many called the mainstream breakout moment. The exchange’s decision was followed by a couple of other crypto firms as well that include Bakkt, eToro, and MicroBT.