Yesterday, Coinbase, the biggest U.S. cryptocurrency exchange, filed
to go public via a direct listing. Coinbase will be listed under the symbol COIN.
A direct listing?
Instead of going through the more expensive initial public offering (IPO)
route, Coinbase wants to sell shares directly to the public without getting help from intermediaries who charge a commission for their work.
$3.4 billion. It has made $3.4 billion from its inception till 2020.
Coinbase’s revenue more than doubled last year from 2019. The company reported a net income of $322 million on net revenue of $1.14 billion for 2020, compared to a net loss of $30 million on revenue of $483 million a year earlier.
It has 43 million verified users, of which 2.8 million transact on the platform monthly. A majority of its net revenue is derived from transactions in Bitcoin and Ethereum.
Coinbase’s listing is coming at a time where Bitcoin’s value is rising exponentially and crypto currencies are going mainstream. This looks like a perfect time.