Coinbase exchange valued at $ 943 million in preparation for direct listing on Nasdaq

Cryptocurrency exchange Coinbase has updated the data specified in Form S-1 for filing with the SEC. The exchange announced the registration of approximately 115 million shares for direct listing on the Nasdaq Stock Exchange.

According to an updated filing filed by Coinbase with the US Securities and Exchange Commission (SEC), the exchange intends to list 114,850,769 Class A common shares on the stock market. Their maximum value is estimated to be approximately $ 943,218,155. However, the form does not indicate the date when Coinbase shares under the ticker “COIN” will be listed on the Nasdaq. 

Coinbase also mentioned the SEC lawsuit against Ripple – at the end of the year, the agency accused the company and its executives of selling unregistered securities for $ 1.3 billion. Due to this lawsuit, Coinbase was forced to remove all XRP trading pairs on its platform despite the fact that this the digital asset accounted for a significant portion of the trading volume on the exchange. Coinbase said the tough regulatory action against Ripple could negatively impact Coinbase’s operating and financial results.

According to Coinbase, in 2019 and 2020, the trading volume with XRP totaled $ 3.4 billion and $ 17 billion, respectively, and the total exchange income from trading this crypto asset was $ 27.1 million and $ 108.6, respectively. As of December 31, 2019, the value of XRP held on Coinbase was estimated at $ 485.9 million, and on December 31, 2020, the amount of XRP on the exchange was already in the amount of $ 1.2 billion. Due to the proceedings of Ripple with the SEC, Coinbase does not expect any proceeds from XRP trading. since trading pairs with this coin are no longer on the exchange. In addition, the amount of digital assets associated with XRP will also be reduced.

Coinbase saw an increase in unexpected system crashes in the past year compared to 2019. This is due to the increased trading activity of users. To prevent such incidents, the exchange is modernizing its infrastructure in order to further cope with the high volume of trading during peak periods.

The S-1 also states that Fred Wilson of Union Square Ventures has been appointed as Coinbase’s Independent Director. Wilson has served on the Coinbase Board of Directors since January 2017. Coinbase also announced investments in the Ethereum-powered Zora Labs marketplace. Coinbase’s total investment in the platform was $ 310,000. Coinbase co-founder Fred Ehrsam is also an investor in Zora.

Coinbase originally filed preliminary paperwork with the SEC back in December last year. Then the exchange considered the possibility of both a direct listing and an initial public offering (IPO). Coinbase confirmed in January  that it intends to enter the stock market through a direct placement of Class A common stock.

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