Coinbase choses Nasdaq as venue for direct listing

Cryptocurrency operator Coinbase, which has an approximate value of $50 billion, will be available on Nasdaq via a direct listing

San Francisco-based cryptocurrency exchange Coinbase has chosen Nasdaq as the venue for a direct listing, according to a report by The Block.

The decision comes two weeks after Coinbase announced it will launch a secondary offering on Nasdaq’s Private Market.

Nasdaq Private Market offers solutions for companies leading up to an IPO, with its website stating that it provides “controlled liquidity programs for pre-IPO companies looking to raise secondary capital for shareholders and investors”.

With 254 million outstanding shares said to be valued at $200 each, Coinbase’s approximate valuation is $50 billion.

However, pre-IPO markets on exchanges like FTX value Coinbase at $283 per share, which would mean the eventual valuation will exceed estimations.

In 2020, Coinbase’s annualised revenue was $2.3 billion, nearly $600 million per quarter, with net profit margins exceeding 20%.

Coinbase was founded in 2012 before raising $75 million in 2015, attracting investment from the likes of the New York Stock Exchange.

It began with a conservative approach to cryptocurrency offerings in light of the uncertain regulatory landscape in the US.

In 2017 it listed Litecoin, Ethereum and Bitcoin Cash to accompany Bitcoin, while in 2019 it took a gung ho approach by listing a number of altcoins.

Last month it decided to de-list Ripple’s controversial XRP token after the SEC filed a lawsuit over the token potentially being considered a security.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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