Coinbase has filed paperwork with the Securities and Exchange Commission (SEC)
The United States-based cryptocurrency exchange Coinbase is preparing to launch an IPO. On its blog yesterday, the exchange announced it had submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission.
Coinbase stated, “The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions”.
The cryptocurrency exchange had been planning its initial public offering (IPO) since July. Previous reports indicated that Coinbase was working on a potential US stock market listing scheduled for the end of 2020 or early 2021. However, it is unclear which stock exchange Coinbase is targeting.
Coinbase is worth over $8 billion in its latest valuation. By filing the Form S-1, the door is now wide open for a future IPO for one of the leading entities in the cryptocurrency sector.
The cryptocurrency exchange insists that the announcement isn’t an offer to sell or the solicitation of an offer to buy any securities. Coinbase further clarified that any offers or solicitation to buy securities will be made as per the registration requirements of the Securities Act of 1933. Instead, Coinbase is making this announcement as per Rule 135 under the Securities Act.
Coinbase to join other publicly-traded crypto companies
Coinbase could soon be joining the ranks of other publicly-traded cryptocurrency companies. One of the leading publicly-traded companies is Canaan Creative. It manufactures ASIC mining rigs and dominates the SHA-256 miners market globally, together with Ebang, Bitmain and MicroBT. However, Coinbase would be one of the first few exchanges to be publicly listed in the United States.
Coinbase has been one of the leading US cryptocurrency exchanges since it was established on 20 June 2012.
Coinbase is yet to provide further details about this announcement. The announcement comes at a time when the cryptocurrency market is rallying. Bitcoin reached a new all-time high for the second time in two days and the third time this month.
The leading cryptocurrency was trading above $23,000 on most cryptocurrency exchanges a few hours ago. It has pulled back briefly and is now trading at $22,875 at press time. Analysts are predicting a rally to $25,000 for the leading cryptocurrency before the end of the year.