Cryptocurrency exchange Coinbase announced its plan to become a publicly traded company through a proposed direct listing of its Class A common stock, according to a post on his company blog.
As one of the largest and longest-standing cryptocurrency exchanges, a public listing for Coinbase would be an important step toward mainstream financial inclusion for the Bitcoin industry and related businesses.
In December 2020, Coinbase announced that it had filed a draft registration statement via Form S-1 with the United States Securities And Exchange Commission (SEC), an filing that companies use to register their securities before going public. Today’s announcement further clarified that Coinbase plans to list its shares directly, rather than conducting an initial public offering (IPO). When companies conduct IPOs, they create new shares that are subscribed and sold to the public. A direct listing only sells existing, outstanding shares without the intervention of underwriters.