Coinbase report shows the exchange is preparing for a stunning $8 billion stock market debut after Reuters reported that the exchange is preparing for a direct listing on the US markets. In our Coinbase latest news, we take a closer look at the new report.
The potential listing is in the early stages and the company has yet to be approved by the Securities and Exchange Commission for public listing. If this happens, it will mark a huge step ahead in the evolution in the crypto industry as it will also be the first crypto exchange to secure a listing on the public market. According to sources cited in the report, the listing will come as early as this year. if approved, Coinbase could be the first non-mining related crypto company to secure a public listing which marks s huge step ahead in the progression of the ever-growing industry. The listing process is still in the early stages and has yet to file formal paperwork to the SEC.
The Coinbase report also stated that the company is in the process of mulling over a listing with some relevant investment banks and law firms:
“Coinbase could pursue the listing later this year or early next year, the sources said, cautioning that the plans are still subject to change. The company has not yet registered its intention to go public with the SEC, but has been in talks to hire investment banks and law firms.”
Both the SEC and Coinbase declined to comment on the matter further but it is important to note that the companies engage in discussions with investment bankers and attorneys about the listing plans which are not always indicative of an imminent listing. This could mean that the crypto exchange’s management team is trying to understand the process better or maybe they are laying the groundwork for a listing at a later time.
The source also noted that the crypto platform is favoring a direct listing on the markets over an initial public offering. This means that no new shares will be offered to investors and it would benefit the company’s pre-listing management team because they will be able to sell their shares right away. Based on the last private fundraising round, Coinbase could likely list the stock market with a bigger valuation than $8 billion.
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