Coinbase Global Inc., the largest cryptocurrency exchange in the US, said it has secretly filed with the Securities and Exchange Commission to go public on what is predicted to be a moment through to the industry.
The San Francisco-based company said in a a statement that he expects his draft registration filing to become effective after the SEC completes its review process. The company did not provide further details about its listing plans and a representative declined to comment beyond the announcement.
Coinbase was valued at more than $ 8 billion in 2018 after $ 300 million guided funding round Global Tiger Management.
The company, which was started in 2012, has raised more than $ 500 million from fans that also include Andreessen Horowitz, The Blender a Greylock Partners, according to his website. Coinbase said it has more than 35 million verified users in more than 100 countries and more than $ 25 billion in assets on its platform.
Kyle Samani, co-founder MultiCoin Capital, said it expects Coinbase to go public to be a “huge event” for the industry.
“It’s a turning point for the asset class, both as a form of legalization, and by providing investors with a way to bet on the crypto industry without betting on a particular asset,” said Coinbase investor Samani.
Bitcoin hit an all-time high Thursday of more than $ 23,000, and has more than doubled this year. PayPal Holdings Inc. started letting consumers use the cryptocurrency in transactions, and companies including Square Inc. a MicroStrategy Inc. made Bitcoin investments, prompting speculation that more institutional investors will jump into cryptocurrencies.
One River Asset Management, a hedge fund specializing in volatility bets, has quietly bought $ 600 million of the digital currency, Bloomberg reported.
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As cryptocurrency prices rise, Coinbase has experienced performance problems this week, including connectivity problems and delays.
Listing Coinbase would be a “major exit for many early workers,” said Nic Carter, co-founder of crypto researcher Coin Metrics. Those employees would have liquidity for angel investments and the means to start their own startups, Carter said.
Several cryptocurrency-related companies, especially exchanges, are already earning hundreds of millions or even billions in annual revenue, and more crypto startups are expected to go public or be acquired in the coming months.
Coinbase’s announcement comes at the end of the largest year ever for initial public offerings on US exchanges. New public companies have raised more than $ 175 billion, according to data collected by Bloomberg. IPOs reached a record high this month for December, with 63 companies raising more than $ 23 billion in new listings, the data show.
The IPO program for 2021 already includes high-profile companies such as an online video games company Roblox Corp., Bumble’s online dating service, is Instacart Inc.’s merchandise distribution platform. and online mortgage lender Better.com, Bloomberg has reported.
Software maker UiPath Inc. said on Thursday that he had secretly filed for an IPO. Online used clothing market Poshmark Inc. also filed Thursday for an IPO.
If Coinbase goes ahead with its plans, it will have to disclose details of its operations and finances in a public SEC filing.
The company the loss of around 60 staff this year after CEO Brian Armstrong suspended a political executive at work. Armstrong told staffers in September that he would offer a generous severance package to those who didn’t want to comply.
Armstrong was a software engineer at Airbnb Inc. before co-founding Coinbase with Fred Ehrsam.
– Supported by Crystal Tse, Vildana Hajric, and Dave Liedtka
(Updates with pricing history in third paragraph)