Cryptocurrency exchange Coinbase files to go public

Coinbase just filed its paperwork to go public through a direct listing, becoming the first cryptocurrency exchange that will list on the Nasdaq.

Why should we care?
Coinbase’s S-1 filing with the Securities and Exchange Commission reveals how the cryptocurrency exchange is riding off a wave of enthusiasm around crypto. The exchange, which had 43 million verified users as of late 2020, became profitable last year as the price of bitcoin rose. According to the company’s S-1, Coinbase reported net income of $322M on net revenue of $1.14B for 2020 – up from a net loss of $30 million on revenue of $483M in 2019. The bulk of the company’s revenue last year came from transaction fees. Risks highlighted in the filing include the “volatile nature of the cryptoeconomy and the prices of crypto assets,” along with changes to the regulatory landscape. Coinbase, which was established in 2012 through the Y Combinator startup program, quickly became a major player in the cryptocurrency space before many established financial services players began making bets on it. The company plans to list its shares under the ticker “COIN”.