Crypto Exchange Coinbase Opts for Direct Listing Over IPO

Coinbase is planning to go public via a direct listing. A review of the exchange’s Form S-1 submission is currently in process.

Coinbase Custody Lists DeFi Project Rally
Shutterstock cover by OpturaDesign

Share this article

Rather than an IPO, Coinbase announced yesterday that they are making plans for a direct listing. 

Coinbase Plans Direct Listing 

Coinbase is planning to go public via a direct listing. The cryptocurrency giant announced the news via its blog yesterday.

The post read: 

“Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the ‘SEC’).”

Last month, the exchange shared the news that it had confidentially filed a Form S-1 with the SEC. The company was initially thought to be planning for an Initial Public Offering, though yesterday’s update suggests otherwise. 

A direct listing involves making stocks available to the open market without issuing new shares. Unlike an Initial Public Offering, a direct listing doesn’t require any underwriters, and it’s not typically used as a means of raising capital. 

Coinbase’s proposed direct listing sits on the SEC’s assessment of its Form S-1. The review is still in process.

Disclosure: The author held cryptocurrencies at the time of press. 

Share this article

Loading...