The Coinbase S-1 application for listing its securities on the stock market has been made public.
The company filed an application in confidence with the US Securities and Exchange Commission (SEC) in December 2020. On February 25, the regulator approved it, removing the main obstacle to Coinbase becoming a public company. As the law firm Wilson Sonsini Goodrich & Rosati explains, the pricing committee determines the price of shares after the entry into force of the application, but they can start trading not earlier than the next day. Coinbase will be listed on the largest tech exchange, the Nasdaq. During preliminary trading, the company’s capitalization was estimated at more than $ 100 billion.
Among other things, the document contains information that Coinbase’s revenue for 2020 was $ 1.1 billion, more than doubling from $ 482.9 million in 2019. In addition, the company says it has approximately 43 million retail customers and 7,000 institutions as its customers. It also has 115,000 ecosystem partners. 2.8 million customers conduct monthly transactions on the platform. At the end of 2019, there were 1 million of them.The trading volume of Coinbase since its inception in 2012 has exceeded $ 456 billion, and the volume of assets on the platform has exceeded $ 90 billion.
“We expect our operating expenses to increase substantially in the foreseeable future and may be unable to achieve profitability or positive cash flow from operating activities on an ongoing basis, which could negatively affect our business, operating performance and financial conditions,” warns the exchange. “So, although we received a net income of $ 322.3 million in 2020, our net loss for 2019 was $ 30.4 million.”
Also in the document, Coinbase discloses the earnings of its CEO Brian Armstrong for 2020 – $ 59.5 million. The exchange notes that Goldman Sachs, JP Morgan Securities and Citigroup assist in resolving issues related to the listing.
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