Coinbase has announced plans to go public but the company doesn’t plan to do so through an initial public offering (IPO).
Here’s everything investors need to know about Coinbase ahead of its public listing.
- Coinbase says that it will use a direct listing instead of an IPO to go public.
- While not unheard of, direct listings aren’t as common as IPOs.
- Slack (NYSE:WORK), Palantir Technologies (NYSE:PLTR), and Spotify (NYSE:SPOT) are all examples of companies that went public through direct listings.
- A direct listing happens when a company goes public without offering new shares of its stock.
- Instead, current shareholders sell their shares of the stock on the public market.
- The company doesn’t reveal when this direct listing will take place.
- It also doesn’t say what exchange its shares will trade on or what stock ticker they will be under.
- To go along with that, it doesn’t say how many shares are on the market or if a certain number of shares will be offered up in the direct listing.
- Coinbase is a digital currency exchange that allows users to buy and sell cryptocurrencies.
- That includes Bitcoin (BTC), Etherum (ETH), Litecoin (LTC), and others.
- The company is based out of San Francisco, Calif.
- It was founded in 2012 by Brian Armstrong and Fred Ehrsam.
- Coinbase is currently the largest crypto exchange in the U.S.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.