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Coinbase gears up to launch its Initial Public Offering

Coinbase gears up to launch its Initial Public Offering

Coinbase announced that it had released its draft registration for an Initial public offering to the Securities and Exchange Commission. Therefore, it has secretly submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission.

Further, Coinbase did not reveal intricate details, including when it presumes to go through with the offering, price, or the number of shares it intends to sell. Moreover, the form will inherit power after the conclusion of the review process by SEC. Nevertheless, provided the SEC fails to approve such an arrangement, wherein new shares are formed, underwritten, and sold to the public, Coinbase could strive for a direct listing in which no new shares are released. Moreover, only prevailing shares are sold without the involvement of underwriters.

Coinbase raises $525.3 million.

Given the regulations, Coinbase, houses almost 35 million users, and is one of the world’s most famous customer-centric cryptocurrency platforms. To date, Coinbase has raised a sum of $525.3 million. Its recent $300 million fundraising round took place in 2018. Henceforth, it established its status as the biggest digital asset provider after examining its market valuation of $8 billion.

Conducive, as one of the biggest on-ramps for mainstream crypto-investors, Coinbase’s revenue swooped from $16 million in 2016 to $923 million in 2017, enhancing its profit by $380 million in the year. Nevertheless, some surveys imply that it accumulated lower revenue of approximately $520 million in 2018, whereas a complete turnover of $488 million in 2019.

However, Coinbase doesn’t involve the only blockchain company to apply and operate an IPO. Moreover, the fundraising strategy has essentially been successful with mining firms like Canaan and Marathon. Nevertheless, several other crypto companies view the fundraising strategy, most notably the crypto settlements company Ripple. Notwithstanding, IPOs are far less popular than Initial Coin Offerings (ICOs) in the blockchain sector. The conventional IPOs may operate for some companies; however, the approach is far from comprehensive outlook.

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