Coinbase Selects Nasdaq As Direct Listing Site

Exchange operator Coinbase selected Nasdaq as the direct listing location, according to two sources familiar with the plans of the San Francisco-based crypto exchange.

The firm's plan to go public in the coming weeks follows a secondary public offering on the Nasdaq private market.

Coinbase goes to Pre-IPO

On January 25, the Nasdaq Private Market launched a secondary market for Coinbase shares, which allowed shareholders with the right to sell the shares. Nasdaq Private Market offers pre-IPO services to companies, including "controlled liquidity programs for pre-IPO companies looking to raise secondary capital for shareholders and investors."

According to one source, shares in the private Nasdaq market were compared at $ 200. With 254 million shares outstanding, this is an estimated company valuation of approximately $ 50 billion.

Coinbase is valued at $ 70 billion

This calculation also represents a significant discount compared to where pre-IPO futures contracts are traded for Coinbase on FTX. The stock is trading at $ 277, which implies a valuation of just under $ 70 billion.

The selection of Coinbase Nasdaq on the New York Stock Exchange (NYSE) represents a big win for the firm. The NYSE directly listed several other unicorns, including Spotify, and in December the SEC signed the NYSE's plan to allow companies to raise funds through direct listing. The NYSE also invested in a $ 75 million Coinbase funding round in 2015.

Generally, a direct listing is a good option for a firm with an established brand that is looking for liquidity for its shareholders rather than raising new capital.

Coinbase and Nasdaq declined to comment on this report.

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