Coinbase Still Preparing for IPO?

Coinbase, the largest cryptocurrency company in the United States, is preparing for an initial public offering (IPO). CNBC presenter Ran Neuner provided this information in his tweet.

He also attached statistical information about the company to the message. According to this data, so far 25 million accounts have been registered on Coinbase, 7 million of them have a non-zero balance, and 600,000 are used to trade monthly.

Also, according to the published documents, Coinbase earned $90 million in the third quarter compared to $450 million in the fourth quarter of last year and more than $1 billion for the whole of 2017. 80% of the company's revenue came from retail customers, 15% from Coinbase Pro, a platform for serving institutional investors, 5% from other sources.

Rumors that Coinbase has plans for an IPO have been around for some time in the cryptocurrency space. And they are not alone in the center of such conversations. More and more large crypto companies are announcing their IPO.

Such a desire for publicity can contribute to the mass adoption of a cryptocurrency business and bring it to a new level. In case of successful placement, the company may attract a large institutional investor. This raises not only the prestige of the company itself but also brings the whole crypto market to a new level of development. Investors still have a lot of confidence in the IPOs.

Therefore, it is not surprising that so many crypto companies are starting to think about such a scenario for themselves. In September, the team of the mobile crypto-trading application Robinhood announced its plans to hold an IPO. Representatives of the company explained that obtaining the status of a public company corresponded very accurately to the mission of the project.

Also in September, the largest mining company Bitmain submitted a listing application for an IPO to the Hong Kong Stock Exchange (HKEX). While the crypto community had been accumulating all the questions about the move, Canaan Creative, the second largest Chinese manufacturer of bitcoin mining equipment, also submitted a similar application.

Well, Ran Neuner promised to reveal the details of the Coinbase IPO tomorrow in the Cryptotrader material. In the meantime, we remind that the company is in the final stages of negotiations on a new round of financing amounting up to $500 million, which will increase its investment valuation to $8 billion. The successful completion of the negotiations will make Coinbase one of the most highly regarded startups in the U.S. At the same time, the sale of a secondary placement to existing investors will allow to cash out.

In August 2017, Coinbase became the first “unicorn” in the cryptocurrency industry, closing a $100 million round of Series D financing. Despite the fact that in 2018, in the fall of the cryptocurrency market, Coinbase’s financial position also suffered, the company remains profitable.