Fun

Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route

News Feed - 2021-01-30 12:01:24

Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route


The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements. Coinbase to Skip IPO Process, Shoots for a Direct Listing


Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.


However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.


On Thursday Coinbase wrote: Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares


Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.


“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.


Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.


Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.


What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below. $180 Million Bitcoin Investment Fund IPOs on Canadian Stock Exchange FINANCE | 18 hours ago Crypto ETF Race Heats Up in 2021- Valkyrie Bitcoin Trust Files to List Shares on NYSE FINANCE | 6 days ago Tags in this story CBSE/USD, Coinbase, Coinbase Futures, Coinbase IPO, crypto exchange, Direct listing, Finance, Goldman Sachs, Greymatter Capital, initial public offering, IPO, James Todaro, new equity, Public Sales, Roblox, shares, Stock, trading platform, Underwriters


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Ezra Reguerra10 hours agoTether’s Ardoino says it’s now a top buyer of US Treasury bills, holds $72.5BThe amount of exposure places Tether in the top 22 biggest holders of U.S. Treasury bills, ranking above countries
AMC Theatres Now Accepts Dogecoin and Shiba Inu Crypto Payments
AMC Theatres Now Accepts Dogecoin and Shiba Inu Crypto Payments The world’s largest movie exhibition company, AMC Entertainment, has finally begun accepting payments in doge
US Resident Operated Illegal Bitcoin Exchange Business – Faces 25 Years in Jail
US Resident Operated Illegal Bitcoin Exchange Business - Faces 25 Years in Jail An Ontario man based in San Bernardino County of the U.S. has agreed to plead gui
Gareth Jenkinson15 hours ago‘We were worried about ecosystem startups’ — Solana co-founder on FTX collapseSolana co-founder Anatoly Yakovenko reflects on the fallout of FTX’s failure and its initial impact on Sol
Rakesh Upadhyay6 hours agoPrice analysis 9/18: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, TON, SOLBitcoin and select altcoins are attempting to make a comeback as traders expect the Fed to hold rates steady during its meet
Nigerian court orders Binance to disclose all user data
Amaka Nwaokocha1 hour agoNigerian court orders Binance to disclose all user dataIn the motion, the lawyer representing the anti-graft agency contended that Binance’s activities in Nigeria contain elements of criminalit
XRP Binance Inflows Spike: What It Means For Price
Este artículo también está disponible en español. On-chain data shows the XRP Binance Netflow has spiked to positive levels recently. Here’s what this could mean fo
Viking Silver Found on Isle of Man Represents 1,000-Year-Old Analog Version of Bitcoin
Viking Silver Found on Isle of Man Represents 1,000-Year-Old Analog Version of Bitcoin Off the coast of the Irish Sea, humans have lived on the Isle of Man since
Bitcoin Will Eventually Be Transacted More Than Fiat Currency, Say 35% of Australians Surveyed
Bitcoin Will Eventually Be Transacted More Than Fiat Currency, Say 35% of Australians Surveyed A new survey finds that 35% of Australians believe bitcoin will ev
Best Altcoins to Buy Now as Elon Musk Plans to Reshape Crypto Through a DEX on Twitter (X)
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Turner Wright7 hours agoChangpeng Zhao steps down as Binance.US chairThe former Binance CEO faces one felony count in the U.S. as part of a settlement with local officials and regulators.1801 Total views6 Total sharesLis
Compass Mining Alerts Bitcoin Miners of Changes in Bitmain’s ASIC Design
Compass Mining Alerts Bitcoin Miners of Changes in Bitmain"s ASIC Design Compass Mining, a bitcoin mining firm, published a blog post stating that Bitmain, the company behind the a