Coinbase Says It Will IPO Via Direct Listing
The company intends to direct list its Class A common stock, the release stated. The listing is expected to go through after the Securities and Exchange Commission (SEC) completes its review process.
A direct listing allows a company to list its shares, which then become available for trading, TechCrunch explained. The process removes the need to price and sell a block of new equity, letting the company avoid elements of a conventional IPO.
Coinbase previously announced its intent to go public in December, and PYMNTS reported that it would be the first major bitcoin company to do so.
Other cryptocurrency exchanges trade publicly in the U.S., but none as large as Coinbase, which is the biggest U.S. crypto exchange and was recently valued at $8 billion, the report stated. The company’s goal is to boost bitcoin acceptance by merging its crypto focus with the existing financial system in the country.
PYMNTS reported that Coinbase’s intent to go public shows how bitcoin is becoming more accepted. In keeping with the popularity of bitcoin, investors like Paul Tudor Jones and Stanley Druckenmiller, and companies such as Massachusetts Mutual Life Insurance, or MassMutual, have disclosed holdings. And companies including Square, PayPal and Robinhood have made trading bitcoin possible on their platforms.
Coinbase also introduced a new visa debit card called the Coinbase Card in October, opening a waitlist, PYMNTS reported. The card purported to let users use bitcoin or other cryptocurrencies to pay for items. Users can convert the cryptocurrencies into cash at ATMs.
The report stated that the Coinbase Card handles all the conversions itself, switching out the crypto of the user’s choice with U.S. dollars before completing any purchase or withdrawal. In addition, there are “crypto rewards” of as much as 4 percent back for Stellar Lumens (XLM) or 1 percent back in bitcoin.
The U.S. launch of the Coinbase Card comes after it was launched in 30 other countries, including the United Kingdom and around Europe.