Coinbase $77 million estimated valuation ahead of public listing

It is no secret that cryptocurrency exchange Coinbase is currently getting ready to trade publicly in the next couple of months. In a press release issued on January 29, Coinbase stated their intentions to become a publicly traded company pursuant to a proposed direct listing of its Class A common stock. Coinbase current value is estimated at $77 billion. According to some people with knowledge of the auction, Nasdaq Private Market might be acquiring those shares in the largest crypto exchange in the US at $303 apiece.

When that happens, the $77 billion company valuation would be greater than the owner of the New York Stock Exchange, International Exchange Inc. The source explained, “The third weekly transaction closed on Friday and the clearing price was $303 a share. The first week it was $200 a share, the second week, it was $301 a share, and the third week it was $303 a share. So, you can kind of see price discovery happening.”

Coinbase has declined to comment. It is evident that with this sale, investors in Coinbase, as well as current and former employees, are going to be allowed to take some cash off the table. As per the sources with knowledge of the offering, once the firm goes public, around 254 million shares in Coinbase will be outstanding and available to trade.

Commenting on the intention to sell its shares by direct listing, in an internal company memo seen by Fortune Magazine, Coinbase Chief Financial Officer Alicia Haas states:

“We believe a direct listing more closely follows the ethos of crypto and Coinbase because it democratizes access and opportunities for all investors.”

A direct listing means a company does not take part in the traditional process of relying on investment banks to set the price and line up for buyers for their shares and have the possibility to directly sell to interested parties.

In preparation of the upcoming IPO, Coinbase have also just appointed Melissa Strait as their new Chief Compliance Officer and thereby strengthening their commitment to trust, through compliance. Paul Grewal, Coinbase Chief Legal Officer comments on her appointment:

“As Coinbase continues to be the bridge between the crypto-economy and the traditional financial system, implementing industry-leading compliance programs will be critical to earning and maintaining the trust of our retail and institutional customers. Melissa’s experience at the very cutting edge of fintech innovation makes her uniquely qualified to navigate the complex web of regulations to which we not only comply with, but are also helping to shape,” Paul Grewal, Chief Legal Officer, Coinbase

The upcoming Coinbase IPO is seen as a milestone by many in the cryptocurrency world. They believe it will help confer legitimacy on an industry that has long been distrusted by regulators and traditional investors. It also marks another step in the growing convergence of crypto and conventional finance towards increased global acceptance.

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