Coinbase Confidentially Files For IPO With SEC


American cryptocurrency exchange Coinbase has filed an IPO with the US SEC. Experts from Messari have estimated the IPO may command $28 billion valuation.

December 18, 2020 | AtoZ MarketsThe largest US cryptocurrency exchange, Coinbase has filed an initial public offering (IPO) with the US Securities and Exchange Commission (SEC). The exchange announced this in its blog.

“Form S-1 is expected to take effect upon completion of the SEC review, subject to market and other conditions,” Coinbase said.

The California-based exchange stressed that the announcement of filing an application with the SEC is not an offer to sell or a petition to buy any securities.

Coinbase’s upcoming IPO estimated at $28 billion

Messari analysts have calculated the potential cost of the upcoming IPO. According to preliminary estimates, the public offering of the exchange will increase the company’s value by $28 billion.

Mira Christanto, Messari’s Asian Market Advisor, noted on her Twitter page that when modeling an IPO valuation, the company divided Coinbase’s business segments into trading fees, storage fees, debit cards, and others.

So, despite the fact that the volumes on Coinbase mainly come from institutions, on average $703 per customer. At the same time, Coinbase Custody is expected to grow to $20 billion in 2020, up from $7 billion in 2019.

Read also: IPOs In June 2020 Raised $31 Billion In 6.5 Years

Users came to the conclusion that if you take commission costs to evaluate the IPO, then the potential value of Uniswap (a decentralized currency exchange protocol) should be significantly higher than Coinbase.

However, Coinbase’s final score may differ significantly, given that the exchange has repeatedly faced a string of technical glitches, one-sided policies, and racial discrimination scandals over the past couple of months.

As a reminder, the popular trading platform Robinhood Markets may conduct an IPO of its shares on one of the New York stock exchanges in the first quarter of 2021.

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