Coinbase endured an array of struggles in 2020. While Bitcoin turned multiple heads with its price change throughout last year, Coinbase, however, failed to keep up with the increased volatility as well as demand for the king coin and the other cryptocurrencies. Despite this setback, the crypto exchange managed to make it big with an array of acquisitions over the last month. Its recent announcement of going public was another add on for the exchange. While it was rumored that the crypto platform intended to go forward with an initial public offering [IPO], Coinbase’s new announcement says another story.
Coinbase Dumps IPO Plan
The entire crypto market was seen back in action after a small setback. Bitcoin was seen heading towards $40K once again. Amidst this pump, Coinbase revealed that it was going to go forward with a direct listing.
In a recent press release, Coinbase pointed out that it intended on opting to become a publicly-traded company. The exchange wants to do so by the process of direct listing of its Class A common stock. This means that the exchange wouldn’t have the need for an underwriter to oversee the sale. The blog post further read,
“Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). Coinbase Global, Inc. previously announced on December 17, 2020 that it had confidentially submitted a draft registration statement on Form S-1 with the SEC. The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.”
Choosing a direct listing instead of an IPO could also act as a barrier against share dilution. Previously, rumors pertaining to the crypto exchange going public with an IPO spearheaded by Goldman Sachs. However, the exchange decided to go with a direct listing,
Tidings about another prominent cryptocurrency exchange, Gemini going public as Coinbase is taking a leap towards the same.