New Research Suggests Coinbase’s IPO Could Be Valued At $28 Billion

A new research suggests that coinbase’s IPO could be valued at $28 billion after the exchange submitted the draft and confirmed the rumors about the initial public offering. In our Coinbase news today, we are reading more about the recent IPO filing.

Coinbase Global announced a short while ago that it submitted a draft registration statement with the Securities and Exchange Commission. The announcement cited a Form S-1 which is the initial registration form for the new securities required by the SEC for public companies that are based in the US.  Any company or security that will meet the criteria will have to have the S-1 filing before the shares can be listed on the national exchange.

The SEC Form S-1 required by companies to file for the initial public offering which is also known as the registration statement under the Securities act from 1933. According to Researches at Messari Crypto like Mira Christanto, took a deep dive into the business and trading figures for the company and arrived at a new value estimate of $28 billion. As Mira reported:

“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 researcher added that the model used to derive the valuation has split the business segments of the exchange by trading fees, debit cards, and custody fees as well as other criteria. The trading volume mainly comes from the institutional clients but the average holdings per client at $703. The crypto custody figure is now even more impressive as it grew from $7 billion held in 2019 to a stunning $20 billion or 3.12% of the entire crypto market cap as per the reports by Tradingview at the time in 2020.

 

Launched back in 2012 thanks to a seed investment from Y Combinator, Coinbase reached a “unicorn” status back in 2017 and Christanto cited the performance of several huge institutional funds stating that the investors are hungry for crypto exposure. Grayscale, Bitwise, and Microstrategy are all surging in terms of investments assets under the management and shares for their funds as BTC hit a new record this week. Coinbase however, often grinds to a stop during BTC price pumps.

The research also mentioned that the company board reshuffle which indicates preparation for going public. As per the reports:

 “Recently the company shuffled its board to include venture capitalist Marc Andreessen and Google veteran Gokul Rajaram along with former Cisco CFO Kelly Kramer in what appears to be final preparations for an offering that could see the company valued at $28 billion.”