Coinbase officially filed for direct listing as a public company on the Nasdaq Stock Exchange.
This is shown by the “S-1” form submitted by Coinbase to the SEC.
The company “Coinbase” revealed important details related to its financial affairs, before offering its shares on the market.
CoinBase, in its statement on Form “S-1”, has expressed its intention to list its Class A common shares on the Nasdaq Stock Exchange under the ticker symbol “COIN”.
The registration of CoinBase with the SEC for direct public listing via the registration statement on Form S-1 was confidential and was only disclosed to the SEC.
However, it has now been announced, following its publication by the Securities and Exchange Commission.
This indicates that CoinBase’s move to become a publicly listed company is highly likely.
Coinbase, which runs a cryptocurrency exchange as well as many other services related to cryptocurrency, has been trying to offer its shares to the public for a while, and its intentions to do so were announced nearly seven months ago.
With the publication now, the general disclosure of Coinbase’s financial performance and how it intends to use its money has been revealed.
The filing with the SEC has enclosed details of the company’s performance in 2020.
CoinBase performed surprisingly well.
This is thanks in part to the soaring prices of bitcoin and alternative digital currencies in general.
CoinBase generated $ 1.2 billion in revenue in 2020, ending the year with a profit of $ 322 million.
It was the first time the company had annual profits of that much.
Although it managed to achieve a net income of $ 322 million in 2020, Coinbase revealed that it incurred a loss of $ 30.4 million in 2019.
Additionally, the filing reported that 43 million verified users were registered with CoinBase at the end of 2020.
On a monthly basis, 2.8 million transactions were processed, and Coinbase’s total assets under management reached $ 90 billion.
In its lifetime as a cryptocurrency exchange, Coinbase handled $ 456 billion in transactions.
Coinbase revealed that since 2012, when it was established, the company has placed cryptocurrencies on its balance sheet.
It intends to continue to do so, despite cryptocurrency volatility being identified as a potential risk factor.
And as a quote from what was stated in the deposit the following:
All of our sources of revenue are based on cryptocurrencies and the wider cryptocurrency economy.
There is no guarantee that any cryptocurrency will maintain its value or that there will be beneficial levels of trading activity.
In the event that the price of cryptocurrencies falls or the demand for trading cryptocurrencies weakens, our business, operating results and financial condition will be negatively affected.