Coinbase, the leading cryptocurrency exchange in the US, has filed an S-1 registration statement with the Securities and Exchange Commission (SEC) indicating its intent to pursue an initial public offering (IPO). The news was posted on the Coinbase website stating the filing, which would include draft offering documents, was submitted confidentially. Once the offering documents are revealed along with the S-1, investors will have keen insight into the operations of Coinbase.
If Coinbase completes the IPO, it will become the first digital asset exchange in the US to become a reporting company. Coinbase boasts a roster of high profile venture capitalists that have bankrolled the firm’s growth with names like Andreessen Horowitz on board.
Coinbase reports more than 35 million users having facilitated over $320 billion in trading volume. Current assets on the platform top $25 billion. Coinbase operates around the world serving both retail and institutional customers. The company, co-founded by CEO Brian Armstrong and Fred Ehrsam, was launched in 2012 and has been able to navigate a dicey regulatory environment in a fast-growing industry that continues to experience compliance challenges.
In the past week, Bitcoin, the world’s most popular crypto, hit new record highs driving public increasing awareness of crypto markets. Armstrong recently cautioned market participants that crypto market rallies should be viewed with caution in the historically volatile cryptocurrency market.
Current valuations of Coinbase have pegged the company at around $8 billion. Combined with the fact that the IPO market has been red-hot this year, as well as the rising interest in Bitcoin and other digital assets, may drive that valuation far higher in a public offering.