Cryptocurrency exchange Coinbase files for a direct listing on the Nasdaq

Coinbase Global, which operates a cryptocurrency exchange and digital currency wallets, filed on Thursday to register its shares with the SEC and complete a direct listing on the Nasdaq. With more than $1 billion in cash on its balance sheet, the profitable company will not raise new capital as existing shareholders sell the Class A shares listed. Coinbase did not disclose the initial tradable float, a reference price, or anticipated timing of its listing.

During 2020, roughly 2.1 million shares were sold in private transactions at $28.83 per share. This year, as Bitcoin prices (and trading volumes) have soared, Coinbase shares have reportedly exchanged hands at a range of $200 to as high as $373 earlier this month. If the company listed its shares at $373, it would command a fully diluted market value of more than $94 billion.

Coinbase states that it is a leading provider of end-to-end financial infrastructure and technology for the cryptoeconomy, and that its platform enables approximately 43 million retail users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries to participate in the cryptoeconomy. The company directly integrates with over 15 blockchain protocols, supports over 90 crypto assets for trading or custody, and offers a suite of subscription products and services.

Coinbase was previously headquartered in San Francisco, but now states that it is a remote-first company with no corporate headquarters. The company was founded in 2012 and booked $1.3 billion in revenue for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol COIN; it is the Nasdaq's first major direct listing, as past large direct listings (SPOT, WORK, PLTR, ASAN) and upcoming listing Roblox (RBLX) all selected the NYSE. Coinbase Global filed confidentially on October 9, 2020. As a direct listing without a firm commitment offering, there are no underwriters on the deal; instead, Goldman Sachs, J.P. Morgan, Allen & Company, and Citi will serve as financial advisors. 

The article Cryptocurrency exchange Coinbase files for a direct listing on the Nasdaq originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

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

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