Coinbase, the largest US cryptocurrency exchange, is set to go public through a direct listing on the NAsdaq on April 14. The move will make Coinbase the first major crypto company to go public in the US and is seen as a major milestone for the young industry.
Coinbase was founded in 2012 and has grown to become the most popular crypto exchange in the US. It has over 35 million users and supports over 50 different cryptocurrencies.
In 2018, it had revenue of $1.3 billion and profit of $520 million.
The decision to list on the NAsdaq is a major vote of confidence in cryptocurrencies by a major US exchange. It also underscores the growing mainstream acceptance of cryptocurrencies.
The direct listing will allow current shareholders to sell their shares on the open market, without raising new capital. This is different from a traditional IPO, where a company raises new capital by selling shares to institutional investors at a set price.
The direct listing will also give retail investors easier access to buying Coinbase shares. They will be able to buy shares on the same platform that they use to trade cryptocurrencies.
Coinbase plans to use the proceeds from the listing to invest in its growth and expand its global reach. It is also setting aside $300 million to buy back shares from employees and early investors.
The direct listing is a major milestone for Coinbase and the cryptocurrency industry. It is a vote of confidence by a major US exchange and will give retail investors easier access to buying Coinbase shares.