Bitcoin exchange Coinbase plans IPO – US$28 billion valuation?
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 USA, wants to go public. According to a press release published by the company on Medium on 17 December this year, Coinbase recently filed a first draft of a corresponding application for Bitcoin Profit approval with the relevant authority, the Securities and Exchange Commission (SEC).
The filing is a so-called „Form S-1“ that includes material information about the business as well as balance sheet data for the pending companies. Now it is up to the stock exchange supervisory authority to decide on the further course of the IPO.
Rumours about the IPO of the hitherto private Bitcoin Exchange have been circulating for quite some time. In July of this year, for example, the news agency Reuters reported on corresponding plans and referred to „internal sources“.
The crypto analysis company Messari estimates Coinbase’s enterprise value 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. […]
Following Coinbase’s IPO announcement, we value the company at $28 billion. Coinbase is one of the most prominent exchanges with $1 billion daily volume in Dec-20.
Check out our model and edit it to your own assumptions. https://t.co/BQeSAxUd5j
– Mira Christanto (@asiahodl) December 18, 2020
Coinbase announcement comes with bitcoin bull run
It is probably no coincidence that Coinbase is announcing its plans now of all times. 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 fantasise about Bitcoin prices beyond 400,000 US dollars.
Coinbase has recently expanded its already dominant market presence even further. For example, it was revealed that the exchange had also facilitated MicroStrategy’s bitcoin shopping spree. MicroStrategy purchased a total of 40,824 BTC; the OTC order volume on Coinbase is therefore impressive.