Coinbase Plans to Go Public Through an IPO

The largest cryptocurrency exchange in the U.S. is going public. Coinbase, which allows investors to buy and sell various digital currencies such as bitcoin, has filed a draft registration statement for an initial public offering with the Securities and Exchange Commission, the company announced today on its blog.

Coinbase will be the largest company focused on cryptocurrencies to ever go public, and will be a good test for others looking to follow suit.

Generic bitcoin picture

Image source: Getty Images.

The IPO announcement comes as bitcoin is on its best run ever. This week, it topped $20,000 for the first time ever, and even surpassed $23,000 at one point.

The bullish market for bitcoin has led some high-profile traders to suggest that one bitcoin could be worth as much as $250,000 or even $400,000 one day. Other institutional investors also view the digital currency as a potential hedge against inflation.

Coinbase makes money by charging fees from investors making trades on the platform, so increased volume in trading benefits the company. It also offers custody solutions for institutional investors looking to trade crypto assets, which it also charges fees for.

Coinbase has more than 35 million users in more than 100 countries, and has seen more than $320 billion of total volume traded through the platform.

In 2018, the company was valued at $8 billion after closing a $300 million round of private funding, according to Tech Crunch.

10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 2/1/20

Bram Berkowitz owns bitcoin tokens and other digital currencies. The Motley Fool has no position in any of the cryptocurrencies mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More