Coinbase proposes direct listing of its shares on the stock market

Coinbase, the leading cryptocurrency exchange plans to take the company public

The US-based cryptocurrency exchange Coinbase announced its plans for a direct listing of its shares on the stock market. The leading crypto exchange made this known in a blog post yesterday as it continues its plans towards becoming a publicly-traded company.

“Coinbase Global today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock”, the blog post reads. However, the proposed direct listing is pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (SEC).

Last month, Coinbase announced that it had submitted a draft registration statement on Form S-1 with the SEC. Coinbase added that the Form S-1 would become effective as soon as the SEC completes its review process, depending on the market and other conditions.

The Form S-1 is yet to become publicly available, and Coinbase hasn’t divulged any information as to when its stock would be listed or the proposed ticker. Coinbase has become one of the most successful cryptocurrency companies. The company’s ‘recently updated About’ page shows that Coinbase now controls over $90 billion in assets on the exchange and over 43 million registered users.

The cryptocurrency exchange experienced a surge in trading volume, and registered users as Bitcoin and other cryptocurrencies recorded a stellar 2020. Institutional investors such as MicroStrategy, Ruffer Investment and others used Coinbase’s prime brokerage service to purchase a large number of bitcoins in recent months. Thus, undoubtedly boosting the exchange’s total assets on the platform.

Coinbase warned its users that the announcement on the direct listing of shares doesn’t stand for a request to sell or buy any securities. The cryptocurrency exchange added that any offers or offers to buy or sell securities will be done according to the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).

Instead, Coinbase made this announcement per Rule 135 under the Securities Act. Coinbase is one of the many success stories to emerge from the cryptocurrency space. Founded in 2012, it has quickly become one of the leading cryptocurrency exchanges, offering a wide range of trading and custody services to retail and institutional investors.