On December 18, Coinbase Global announced that it had filed with the Securities and Exchange Commission (SEC) a draft declaration of registration. Thus, the company confirmed earlier rumors about IPO public offering.
Advertisement It references Form S-1, which is the SEC’s pre-registration form for new securities for US-based public companies. Any company or security meeting these criteria must have an S-1 declaration before its shares can be listed on a national stock exchange.
$ 28 billion IPO
Messari Crypto researcher Mira Christanto has delved into some of the company’s business data and valued it at $ 28 billion. The model used to prepare the valuation divided Coinbase’s business segments into transaction fees, custody fees, debit cards and other criteria.
Following Coinbase’s IPO announcement, we value the company at $ 28 billion. Coinbase is one of the most prominent exchanges with $ 1 billion daily volume in Dec-20.
Check out our model and edit it to your own assumptions. https://t.co/BQeSAxUd5j
– Mira Christanto (@asiahodl) December 18, 2020
The trading volume is mainly from institutional clients, but the average investment portfolio per client is $ 703. The amount that investors have entrusted to the company’s trusteeship is even more impressive. It increased from $ 7 billion in 2019 to $ 20 billion, or 3.12% of total market capitalization.
Christanto added that Coinbase had reached unicorn status in 2017, launched in 2012 with a seed investment from Y Combinator. The researcher also cited the achievements of several large institutional funds, stating that equity investors “are hungry for exposure to cryptocurrency products.”
The value of investments, the amount of assets under management and the stock prices of MicroStrategy, Bitwise or Grayscale are increasing rapidly as Bitcoin reached the new ATH this week. Unfortunately, Coinbase often has stability issues when pricing pumps. This was also the case this time. Both Binance and Coinbase were down for a while as price rose up the chart.
Christato also mentioned a large reshuffle in the company’s management board, which indicates that she is prepared to enter the stock exchange.
The company recently made changes to its board of directors to include venture capitalist Marc Andreessen and Google veteran Gokul Rajaram along with former Cisco CFO Kelly Kramer in what appears to be the final preparation for an offer that could bring the company $ 28 billion.
According Investopedia, it could be one of the biggest IPOs in history, beating industry giants like Facebook ($ 16 billion), Visa ($ 18 billion), and even Alibabe ($ 25 billion).