San Francisco-based cryptocurrency company, Coinbase could become the first U.S based entity in the industry to conduct an initial public offering (IPO). The company confirmed today that it has confidentially submitted a draft registration statement on Form S-1 with the United States Securities and Exchange Commission (SEC).
A Form S-1 is an SEC filing used by potential-IPO companies to register their securities with the regulator and typically contains vital business and financial information about the company in respect to the securities that they plan to issue.
We have confidentially submitted our draft registration (Form S1) with the Securities and Exchange Commission. https://t.co/U6d0sVz0aX
— Coinbase (@coinbase) December 17, 2020
For the records, rumors of a potential Coinbase IPO first sufficed in July when Reuters sources said that the company is in talks to hire several investment banks and law firms to pursue a stock exchange listing. The reports further suggested that Coinbase’s stock debut would come in the form of a direct listing rather than a traditional initial public offering (IPO).
While a Form S-1 filing and announcement is usually the first step, Coinbase is yet to provide information about how it would structure the upcoming issuance and stock exchange listing.
The company is currently valued at $8 billion following a 2018 Series E funding round, and completing any form of stock exchange listing will be a massive feat for both the Brian Armstrong-led unicorn and the cryptocurrency industry in general.
Danny Scott, CEO of UK-based exchange CoinCorner shared his thoughts on the development, describing it as “exciting news for the industry as a whole,” and one the further legitimised Bitcoin.
I wouldn’t want to hazard a guess of their IPO value, but I have a figure in mind and I think it will blow peoples minds what value this IPO will bring.
Particularly coming at a time when cryptocurrencies are entering mainstream consciousness, a Coinbase IPO could pave the way for more regulatory clarity and institutional involvement. It could also lift the ‘black’ tag off the industry and create the impression that cryptocurrencies are here to stay.
Notice: We edited this article to include comments from CoinCorner CEO, Danny Scott.