Coinbase, the largest cryptocurrency exchange in the United States, will debut through a direct listing on the Nasdaq on April 14, providing its first quarter 2021 financial report and full-year forecast on April 6 to help investors assess the potential value of its stock. Coinbase’s market value estimates range from $ 68 billion to over $ 100 billion.
Coinbase officially announced on Thursday that the estimated direct listing date for its Class A common stock is April 14th.
Coinbase will be the first US public cryptocurrency company to trade Coinbase shares under the ticker COIN on the Nasdaq exchange.
The fact that this will be a direct listing, and not an IPO, Marketinfo.pro wrote in the article “Crypto-exchange Coinbase has applied to the SEC to become public through a direct listing”.
A direct listing of Coinbase means that the company will not issue new shares, but will allow the existing owners of its shares to sell them at the market price. This way of entering the stock market does not require expensive services of underwriting banks, but the company does not attract new financing. Direct listing is becoming increasingly popular with profitable companies, with companies such as Roblox, Spotify (SPOT), Slack (WORK) and Palantir (PLTR) previously listed through direct listing on the NYSE.
Coinbase, in its S-1 filing with the SEC on March 23, indicated that its average share price on the private market was $ 343.58, which translates to a market value of at least $ 68 billion.
However, given the 114.9 million Coinbase stock, analysts suggest that the company’s direct listing could be worth more than $ 100 billion.
Coinbase also announced Thursday that it will announce its financial results for the first quarter of 2021 on April 6 and will provide a financial forecast for 2021. This is good news for investors looking to determine how much Coinbase shares should be worth. If Coinbase performs well in the first quarter, the company is likely to list its shares at a price higher than $ 343.
Coinbase goes public at a very good time – over the past year, bitcoin has grown by about 800%, large acquisitions of cryptocurrency by well-known companies and the introduction of services related to cryptocurrency from such industry giants as: Visa (V), Mastercard (MA), PayPal (PYPL ), Goldman Sachs (GS) and Morgan Stanley (MS) talk about the recognition of digital currencies and the growth of their potential in the future.
Coinbase’s revenue in 2020, amid huge increases in cryptocurrency prices, rose sharply to $ 1.14 billion, while in 2019 the company’s revenue was $ 483 million.Last year, Coinbase made a net profit of $ 322 million against a loss of $ 30. 4 million a year earlier.
Coinbase reported a 34% jump in its verified users to 43 million in 2020. The company receives income from transaction fees (buying / selling cryptocurrencies), which depend on the value of cryptocurrencies; Coinbase does not charge fees for storing cryptocurrencies.
Institutional trading volume on Coinbase in Q4 2020 was around 66% of revenue, according to the Securities and Exchange Commission.
The main risks for the future of Coinbase are lower prices for cryptocurrencies and a decrease in the volume of trading in them, in addition, there are risks of technical security and software errors. At the same time, given the high volatility and risks of cryptocurrency trading, the US government and other countries may put forward stricter rules for crypto exchanges.
Last month, Coinbase CEO Brian Armstrong and CFO Alessia Haas hosted a forum on Reddit called “Ask Me Anything,” where they answered a series of user questions ahead of the company’s upcoming direct listing. It was like an alternative to “roadshow” – a process that is conducted for investors by the management of the company before the IPO to justify the purchase of shares in the company.
Armstrong said Coinbase is significantly increasing its staff to improve the customer experience for its exchange. Coinbase is also considering partnering with decentralized cryptocurrency exchanges (DEXs) like Uniswap on its platform, he said.
Gene. The director also stated that Coinbase will not offer tokens for traditional shares due to the lack of the necessary technical infrastructure and regulatory barriers.