The Cryptocurrency Exchange Coinbase Plans to Issue on the NASDAQ on April 14
The company that runs the crypto conversion site Coinbase last year grossed $ 1.3 billion and earned $ 322 million. It has 43 million customers and employs 1,200 people.
The company that operates the Coinbase cryptocurrency exchange website is planning to go public on April 14, the company announced yesterday. The Crypto Exchange, founded in 2012, provides services to institutional and private clients in the crypto markets. It has grown to 1,200 employees and 43 million customers in more than 100 countries. In 2020, it generated $ 1.3 billion and earned $ 322 million.
In a direct offering, companies save the money they would pay to investment banks in a traditional offering, but do not raise money during the process. In private markets, Coinbase shares have recently changed hands with a price tag that will give the company a valuation of $ 67 billion.
With $ 1 billion in cash in its hands, the company is able to ride on the infamous volatility of bitcoin. 96% of the company’s revenue comes from transaction fees, meaning that the company makes a profit when Bitcoin is in one of its trading frenzy. In 2019, a bad year for Bitcoin, the company lost about $ 30 million. The currency is on a sharp upward trend today, trading at more than $ 59,000.
While Coinbase serves the counterculture of Bitcoin, its way to the IPO was a mix of traditional and unconventional steps. It will issue its stake in NASDAQ, but gave up a traditional IPO in favor of a direct IPO. The company’s executives held three days of questions and answers on the Reddit platform ahead of the IPO. To do so, but regulatory and technical problems have prevented it from happening, and the issuance of digital assets is something the company is considering doing in the future.
The Cryptocurrency Exchange Coinbase Plans to Issue on the NASDAQ on April 14 - /10