Top US-based cryptocurrency exchange, Coinbase has finally announced its plans of filing for an Initial Public Offering (IPO), bringing an end to months of speculation. Even though the company has not released its planned valuation, a possible value peg was placed by research firm Messari on the firm. Based in New York, research company Messari had published a report last week where it dissected the valuation of Coinbase, as the exchange is preparing for its IPO. Messari had discussed different business aspects in its report, which have been incorporated by Coinbase, from core exchange functions and debit cards to custody and trading.
In an overview, a valuation of $28 billion was assigned to the exchange by the research firm. Messari talked about the exchange’s largesse and stated that Coinbase handles has a daily trading volume of more than $1 billion and its client base comprises of 35 million customers. As Coinbase Custody has also rallied, with its total of assets under management rocketing to $20 billion, which is an increase from 2019’s $7 billion, it is apparent that Coinbase is doing a great job of riding the crypto high, as opposed to a number of companies in the industry.
The previous fundraising round helped Coinbase in achieving unicorn status, as it came to around $8 billion since 2018. However, taking into account how much the industry, as well as Coinbase, has grown since then, this value was also expected to skyrocket. During the second half of 2020, there have been regular reports about Coinbase filing for an Initial Public Offering (IPO). However, it was only last week that the exchange had decided to take a plunge and it announced that they had reached out to the Securities and Exchange Commission (SEC) for filing a Form S-1. Nonetheless, it should be noted that this is not an official IPO prospectus.
The Form S-1 filing only provides a possibility for listing in the future and Coinbase highlighted that the SEC would first have to review before a filing can be made. It shouldn’t be that difficult to get reviews, considering the fact that Coinbase has a reputation of playing nice with regulators and government agencies. Along with its record of impressive services, there is no doubt that Coinbase will face any significant hiccups on the way to its IPO. The exchange is already moving ahead, as it was reported last week by Business Insider that their offering would be led by top investment bank, Goldman Sachs.
It was noted by the news medium that the exchange had been linked to Goldman through one of its co-founders Fred Erhsam, who had previously been a trader for the investment bank. According to reports, Coinbase’s co-founder had worked between 2010 and 2012 at Goldman before he had joined Armstrong for developing the exchange. Even though he left Coinbase in 2017, he still has a position on its board. No additional details have been provided by any party, which suggests that Coinbase is doing things behind the scenes.