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.
— Techmeme (@Techmeme) January 28, 2021
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.
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.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.