Revelations never seen before from a crypto unicorn. Exciting details before a historic listing on Nasdaq. Another complex storyline amid a bullish period for bitcoin and the larger crypto-space.
This is Coinbase, the US based crypto exchange that is on track for a major direct listing later this year. An important step in that direction was taken on Thursday when the firm’s S-1 filing, the draft of which was confidentially filed with the SEC in December, became known.
You can be excused for feeling a little dizzy in the midst of the deluge of information appearing on Coinbase today, so let’s summarize the major pieces and key elements of the S-1.
(If you’re a research subscriber, do not miss the team’s in-depth exploration of Coinbase, its history, and the ins and outs of its versatile business).
Volumes, revenue, and more
The Block Research team tracked down a series of handy charts using S-1 data, including volume figures and the breakdown of Coinbase’s institutional and retail base.
Coinbase’s submission noted that as of the fourth quarter of 2020, it had 43 million verified users on its platform – and 2.8 million monthly transactions. That’s higher than 1 million a year before.
If you look at the volume of data, you can see that the institutional footprint on Coinbase’s services is growing, although more retail users have also switched at significant prices in recent months.
On the revenue side, Coinbase only provided data until the first quarter of 2019. Yet the available information shows steady growth from mid-2020, with a predicted jump in revenue due to the recent trading activity in the first quarter of this year.
Important details of the S-1
The S-1, as expected, struggled tongues over the implications of the file contents. This includes speculation about the financial windfall for Coinbase insiders and investors that could make significant profits, depending on the aftermath of the company’s direct listing.
As The Block reported today, a few things in particular got stuck on the Coinbase submission.
For example, we learned from some acquisitions of Coinbase, but also for the crypto-brokerage service Tagomi and, more controversially, the intelligence firm Neutrino.
The S-1 also unveiled the big wigs on Wall Street that support the Coinbase offer for direct listing, with Goldman Sachs, Citi and others playing a key role in the unique public debut via a direct listing on Nasdaq.
The submission of Coinbase also showed the degree of regulatory scrutiny that the exchange company has attracted in recent years. These include what appears to be an ongoing investigation by the CFTC into an 2017 (ETH) accident and summonses from the SEC as well as from state agencies in California and Massachusetts.
Look ahead
The S-1 is therefore public. What now?
To begin with, according to insiders, one can expect the company to make its debut on the market next month. It also looks like it will trade at $ 400, as the secondary market has indicated.
Listen to Thursday’s episode of The Scoop podcast featuring Frank Chaparro and Larry Cermak of The Block, outlining the big details of the submission and what it means if you’re looking for food to chew on before the live show. in the larger context of the crypto market.
© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.