Cryptocurrency exchange Coinbase is ready to cash in on the recent crypto hype, and to do so, it released its S-1 filing with the U.S. Securities and Exchange Commission today. With talk of a Coinbase IPO taking over Wall Street, what do you need to know? And what will make COIN stock stand out?
As a quick recap, Coinbase is the largest cryptocurrency exchange in the United States by trading volume. Importantly, it gives investors access to popular digital currencies like Bitcoin (CCC:BTC), Ethereum (CCC:ETH), Litecoin (CCC:LTC) and so many more.
With that in mind, here is what you need to know about COIN stock and the Coinbase IPO now.
- Talk of a Coinbase IPO has been ringing on Wall Street for quite some time.
- Earlier in December 2020, the company shared that it filed for a direct listing IPO.
- Because of its role as a tech-focused crypto exchange, executives have long talked about a need for a unique IPO. This is why the company is going the direct listing route.
- So what do you need to know from the S-1? Importantly, many details are still missing.
- At this time, Coinbase has not revealed how many shares of its common stock it will resell during the direct listing.
- It also has not revealed the IPO price range, or the voting power common stock holders will have.
- Coinbase shared that its revenue since company inception was $3.4 billion.
- In 2020, most of that revenue came from transaction fees.
- The company says its platform gives 43 million retail users access to the cryptoeconomy.
- It also provides access to 7,000 institutions and 115,000 partners in over 100 countries.
- Coinbase offers options to invest, store, spend and earn crypto assets.
- For institutional clients, it also provides advanced trading options.
- Coinbase will trade on the Nasdaq under COIN.
COIN Stock and the Coinbase IPO
What makes COIN stock and the Coinbase IPO so special?
There are multiple reasons for the enthusiasm behind the company debut. Perhaps the largest is just the recent support for Bitcoin and other cryptos. Just a few days ago, BTC hit an all-time high above $58,000. The first Bitcoin exchange-traded fund launched in North America and met with great success. And just this week, Federal Reserve Chair Jerome Powell has recommitted his intent to launch a digital dollar. Those all definitely speak to the growing mainstream interest and support in the crypto space.
Beyond that though, consider Coinbase an answer to the GameStop (NYSE:GME) rally. After Robinhood placed a series of trading restrictions on GME stock and other equities, investors expressed interest in decentralized finance (DeFi). Cryptocurrencies and blockchain investments are one answer to that. Coinbase, which provides a key to that opportunity, therefore stands out.
The Coinbase IPO is certainly one to watch.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.