Author Liang Che
The major crypto exchange Coinbase announced on Thursday that it has secretly applied for a public offering (IPO) with the US Securities and Exchange Commission (SEC).
Founded in 2012, Coinbase was originally a simple platform for consumers to buy Bitcoin. At present, Coinbase has become a comprehensive enterprise in crypto-related businesses and has developed into a leader in the industry.
Coinbase’s announcement coincided with the recent surge in the cryptocurrency market. According to data from BiTweet, the current price of Bitcoin, the largest cryptocurrency by market capitalization, has exceeded $23,000. This has led to a surge in trading volume on major cryptocurrency exchanges. This is good news for companies like Coinbase, because most of Coinbase’s revenue comes from trading commissions.
Coinbase did not release any details related to the IPO. Coinbase raised 300 million US dollars in the last round of financing, and its valuation is close to 8 billion US dollars. However, due to the booming cryptocurrency market, Coinbase’s current valuation may soar.
Industry insiders believe that Coinbase’s IPO will become a milestone in the crypto industry’s long-term pursuit of legitimacy. When Coinbase was founded, regulators considered it a tool for crime and money laundering. Although some policy makers are still hostile to digital currencies, the acceptance of digital currencies by mainstream institutions has surged in the past two years. At the same time, Coinbase has made dozens of acquisitions in recent years to help diversify its revenue model.
In the past few months, Coinbase seems to have been preparing for the IPO, and the company’s board of directors has undergone a series of personnel changes. Recent initiatives include adding Kelly Kramer, Cisco’s chief financial officer, to the board of directors and promoting senior Silicon Valley investor Marc Andreessen to a full board member.
