Coinbase IPO: exchange reportedly to be listed on Nasdaq

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys playing cricket,… read more.
on Feb 2, 2021
  • The largest US crypto exchange, Coinbase, will allegedly raise funds via a direct listing on Nasdaq.
  • The information is not official at the time of writing, but it does come from inside sources.
  • The sources also shared that share price sits at $200, which puts Coinbase's value at $50 billion.

US-based cryptocurrency exchange, Coinbase, has been planning its direct listing for quite some time now. The event is now highly anticipated, and the most recent rumor in the crypto industry is that the exchange has chosen Nasdaq as its direct listing venue.

Coinbase chooses Nasdaq for direct listing

So far, neither Coinbase nor Nasdaq have made an official announcement regarding this rumor. Instead, the information comes from two sources that claim to be familiar with the exchange’s intentions.

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Provided that the information is genuine, the company allegedly plans to first tap the public markets in the following weeks. After that, it will have its secondary offering on Nasdaq Private Market.

Nasdaq Private Market actually launched a secondary market for the exchange’s stock about a week ago, on January 25th. In doing so, the platform allowed shareholders to sell their shares. The Private Market was created in order to offer services for various companies looking to raise secondary capital, before they hold their IPOs.

Coinbase opts for Nasdaq over NYSE

One of the sources that delivered the information claims that Nasdaq Private Market’s shares come at a price of $200 each. With the total number of available shares sitting at 254 million, it is implied that the company’s value sits somewhere around $50 billion.

While this is rather impressive, it is also somewhat lower than the pre-IPO futures contracts price on crypto derivatives exchange, FTX. This platform offers Coinbase shares at $277, which would put the company’s value significantly higher, at $70 billion.

Regardless, if Coinbase does end up offering its share on Nasdaq, rather than the NYSE, this will be an important milestone for the company. However, NYSE has seen its fair share of direct listings regarding major firms, such as Spotify. The exchange received permission from the US SEC to allow firms to raise funds on its platform through direct listings in December.

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