With Bitcoin soaring to new all-time high (ATH) beyond $22,000 level, cryptocurrency exchange Coinbase files for initial public offering (IPO). If successful, Coinbase will be the first major Bitcoin-focused company to test the public markets.
Coinbase has confidentially submitted a draft registration for a public offering to the Securities and Exchange Commission (SEC). The application will become effective after the SEC completes its review process, Coinbase announced in a blog post on Thursday. Also, it said the offering would be subject to market conditions and other considerations.
Coinbase’s Confidential IPO
The filing positions Coinbase to be one of the first big IPOs of 2021. Coinbase has never disclosed any profit or revenue figures. However, under the confidential IPO application, relevant information is limited to Coinbase’s announcement.
Coinbase, founded in 2012 by Brian Armstrong and Fred Ehrsam, is one of the most recognizable names in the industry. It currently has about 35 million users, more than Charles Schwab’s platform. It has raised $547 million, and has a market valuation at $7.7 billion in 2018, according to Crunchbase. Investors include Andreessen Horowitz, Union Square Ventures, BBVA Ventures and USAA.
Bitcoin Rally to New ATH
The cryptocurrency industry has been waiting for Coinbase’s IPO for some time. However, rigors of SEC registration have stalled that process.
Controversies have surrounded the exchange in 2020. Amid nationwide protests in the US, Armstrong published a blog post saying Coinbase wouldn’t engage in societal or political issues. Hence, Coinbase offered buyouts to employees who disagreed with the stance.
Coinbase’ IPO announcement comes after Bitcoin soared beyond $20,000 for the first time in history. As of the time of writing, Bitcoin is trading at $23,147, up 6.4% in the last 24 hours. It slipped 2.3% from the new all-time high at $23,624.