Messari, a provider of cryptocurrency data and research, has valued Coinbase at close to $ 30 billion. This comes after the crypto exchange in San Francisco filed all necessary documents for an IPO with the U.S. Securities and Exchange Commission (SEC).
Coinbase Confirms SEC Registration
The crypto exchange made the announcement in a tweet on December 17 and a related blogpost that reads,
“Coinbase Global, Inc. announced today it has confidently submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). Form S-1 is expected to become effective upon completion by the SEC of its review process, subject to market and other conditions. ”
In the tweet, Coinbase makes it clear that the company is about to complete an Initial Public Offering (IPO) subject to regulatory review.
Species about IPO from Coinbase have been swirling for months since July this year. Back then, rumor had it that Coinbase was considering a stock market listing and was already having serious discussions with law firms and various investment banks but had not filed any paperwork with the SEC.
While Coinbase has not revealed a specific date, the recent update confirms the rumors and suggests the exchange could be going public very soon.
As Coinbase prepares for a public offering, Messari estimates the exchange’s current valuation is $ 28 billion. The research firm analyzed various aspects of Coinbase including its trading volumes, debit cards, and assets under custody to arrive at this park figure.
In October 2018, Coinbase was priced at $ 8 billion after a fundraising round. Messari, however, believes the company now has a $ 28 billion valuation. Nevertheless, it will be a huge IPO and will allow more institutional and retail investors to come into contact with cryptocurrencies.
Strategist at Messari noted that an IPO would not only benefit Coinbase but also the crypto industry as a whole:
“This listing is important even for Token valuations as Coinbase will provide a pricing anchor – not only for future equity listings – but also for crypto-native exchange tokens.”
Coinbase’s presentation with the SEC is particularly noteworthy because it comes at a very interesting time in the crypto space. The exchange essentially announced the registration just days after the world’s oldest cryptocurrency jumped past the $ 20,000 mark for the first time in history.
Bitcoin’s meteoric rise has drawn a lot of attention from mainstream media worldwide and the entire financial world. So, Coinbase could be taking advantage of the magnifying glass that has been set on bitcoin to position itself as a bet-go-Wall Street on cryptocurrencies.
However, it should be noted that Coinbase is not the first blockchain-focused company to launch an IPO. Other companies like Marathon and Canaan have also gone down a public offering road. There are also reports that a blockchain payment company from San Francisco, Ripple, is considering going public.