Bitcoin exchange Coinbase has filed a so-called Form S-1 with the Securities and Exchange Commission. This is the company’s first step towards an IPO. However, there is still a long way to go until then.
Coinbase, one of the largest bitcoin exchanges in the US, wants to go public. According to a press release published by the company on Medium on December 17 of this year, Coinbase recently submitted a first draft of a corresponding application for approval to the relevant authority, the Securities and Exchange Commission (SEC).
The application is a so-called „Form S-1“ that includes material information about the business as well as balance sheet data of the pending companies. It is now up to the Securities and Exchange Commission to decide on the further course of the IPO.
Rumors about the IPO of the hitherto private Bitcoin Exchange have been circulating for quite some time. In July of this year, for example, the Reuters news agency reported on corresponding plans, referring to „internal sources.“
The crypto analysis company Messari estimates the enterprise value of Coinbase at a considerable 28 billion US dollars.
Following the announcement of Coinbase’s IPO, we value the company at $28 billion. Coinbase is one of the most prominent exchanges with $1 billion in daily volume in December. […]
Coinbase announcement comes with bitcoin bull run
Meanwhile, the fact that Coinbase is publicizing its plan now, of all times, is likely no coincidence. After all, Bitcoin and Co. are getting a lot of media attention these days thanks to the ongoing price rally. Within the last seven days alone, BTC has gained a good 25 percent in value. Some institutional investors are therefore ultra-bullish these days and fantasize about Bitcoin prices beyond $400,000.
Coinbase has recently expanded its already dominant market presence even further. For instance, it was revealed that the exchange had also facilitated MicroStrategy’s bitcoin shopping spree. In total, MicroStrategy had purchased 40,824 BTC, so the OTC order volume on Coinbase is quite impressive.
In addition, the exchange has played an important role as a mainstream onboarding platform for private investors inside and outside the U.S. for years. The move to become a public company therefore seems only logical.
Most recently, Coinbase was in the headlines due to a blog article by CEO Brian Armstrong. In it, Armstrong prohibited his employees from participating in political discussions on Twitter, for example. The reason was to maintain the greatest possible openness toward all political camps. The aim was to create an open, decentralized and inclusive financial system, and this could only be achieved without any political color schemes.
Those who do not want to comply with the new regulations can take advantage of a „generous severance package,“ he said. The post caused a controversial debate about freedom of speech and the wide arm of the employer into the personal sphere. Even Twitter founder and Bitcoiner Jack Dorsey intervened.