In an announcement by Coinbase their public direct listing of its Class A common stock was declared effective by the Securities and Exchange Commission (SEC) on April 1, 2021, and are set to be available on Nasdaq April 14.
In a direct listing, the issuing company forgoes selling new stock and instead allows existing stakeholders to sell their shares to new investors. The company has said it plans to register nearly 115 million shares.
The crypto exchange and custodian will also hold a first-quarter earnings call on April 6, to provide a financial outlook for 2021, Coinbase said in a press release.
Coinbase Has Made Major Stride Since Its Inception
The company was valued at between $90 and $100 billion in its final week of trading on Nasdaq’s private market. Further, a $100 billion debut would make Coinbase more valuable than traditional tech stocks such as Uber. The company has more than 43 million users trading digital assets in over 100 countries. The company also in 2020, brought in $1.3 billion in revenue and turned a profit of $322 million.
Based on the average price of $343.58 of shares traded on Nasdaq’s private market last month, CNBC calculated Coinbase CEO Brian Armstrong’s 39.6 million shares will be worth $13.6 billion, catapulting him into the billionaire rankings alongside individuals like Jeff Bezos, Elon Musk and Bill Gates.
The Commodities Futures Trading Commission (CFTC) also announced that it had reached a settlement deal worth $6.5 million with Coinbase. The settlement puts an end to the company’s claims reporting inaccurate transaction data, along with allegations of a former employee indulging in improper trading – allowing them to continue with their listing.
The listing had been pushed back from March however, the delay was anticipated, as direct listings are usually delayed.
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