The largest cryptocurrency exchange in the US goes 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 cryptocurrencies-focused company to ever go public, and will be a good test for others looking to follow suit.
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 investors who make trades on the platform, so more trading benefits the company. It also offers custody solutions for institutional investors who want to trade crypto assets, for which it also charges fees.
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 priced at $ 8 billion after closing a $ 300 million round of private money, according to Tech Crunch.