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Crypto Company Coinbase Unveils S-1 Filing For Direct Listing

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After confidentially filing for a public offering in December, the popular cryptocurrency exchange Coinbase has now unveiled its S-1 filing with the US SEC to the public, giving a peek into the company's financials and operational information not publicly known before.

Coinbase's S-1 filing shows $1.28 billion in revenue in 2020, more than double its $533.7 million revenue in 2019. The crypto exchange is very profitable with a net income of $322.3 million in 2020, compared to a $30.4 million loss in 2019.

With its just-revealed financial stats, it should then be no surprise that investors were recently reported to have driven up the market value of Coinbase, which was valued at $8 billion from its last formal financing round, to over $100 billion in a private market share sale ahead of the company's listing.

As it is, technology stocks have been hot as of late and generally seen great favor from public market investors. The crypto markets have been even hotter, with Bitcoin and several other cryptocurrencies currently trading at record highs. Then comes Coinbase, a technology company focused on cryptocurrency that's posting rapidly growing revenues and is highly profitable, and we can infer why investors are explicitly going nuts for Coinbase.

In the span of nine years, Coinbase has grown from a small crypto exchange into a giant one reporting a lifetime trading volume of $456 billion on its platform as of 2020 end. Primarily a cryptocurrency exchange, the company has also diversified into other businesses such as custodian services and crypto payments processing.

Coinbase is known to be the biggest crypto exchange in America and one of the biggest globally where it's dragging the top spot with the likes of Binance, Kraken, and Huobi. Out of its many rivals, Coinbase would now be the first to test the public markets in the US and likely be a judge of investor sentiment towards crypto exchanges in the country with the largest stock market globally.

With an S-1 filing now unveiled, a Coinbase public listing should be expected in a few months' time. 

Coinbase is heading for a direct listing on the Nasdaq Global Select Market to trade under the ticker symbol "COIN".

Correction - We made a correction to indicate that Coinbase's annual revenues in 2020 and 2019 respectively were $1.28 billion and $533.7 million. The previously stated $1.14 billion and $483 million respectively were Coinbase's net revenues and not total revenues in those years.

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