It’s all about the crypto-Benjamins
Image from Glassdoor
Coinbase is going public next week. Coinbase is the largest crypto wallet in the United States with tens of millions of accounts. It makes its money by charging transaction fees.
Coinbase, like many of the most successful startups of our time, is based in San Francisco.
Coinbase is going public just as interest in bitcoin and other cryptocurrencies has exploded, with the digital coins experiencing a massive moment. Bitcoin more than tripled its 2018 high when it topped $61,000 earlier this year. Other cryptocurrencies, including Etherium, have also seen notable growth. The coverage of Coinbase will probably cause many more investors to sign up, meaning that that the bull market has far to run.
Coinbase will go public on April 14 with the COIN ticker on Nasdaq. On April 6th, Coinbase will release its Q1 2021 earnings report. This will provide guidance on how Coinbase should trade. Right now it is expected to go public at a market cap of around $100 billion.
Coinbase is on the up-and-up. The company made $322 million in 2020, more than it had ever seen before and that's a massive improvement from their 2019 figures when they lost money.
Coinbase is not playing by the rules. The company has announced that instead of partnering with banks to court investors who would get preferential prices, Coinbase will opt for a direct listing. Moreover, Coinbase will not issue any new shares, and employees and early investors can sell their shares at market price.
The company will offer 114.9 million shares as part of the direct listing and will be the first crypto exchange to go public in the United States.
Coinbase has approximately 43 million accounts. That’s more than Charles Schwab! Its accounts grew over 30% from 2019. The company has raised over half a billion in investor capital since going through the Y Combinator accelerator.