Coinbase, the largest US exchange, is now ready to go public after verification, approval, and release of the S-1 form by Commission bag and Exchange (SEC).
The publication of the document by the SEC clears the way for the expected direct listing of Coinbase on Nasdaq to take place and ends a 7-month journey in which the exchange worked to achieve the goal.
At the same time, the document provides the first public view of the firm’s financial performance and how it intends to use the funds it would raise:
“We expect our operating expenses to increase significantly in the foreseeable future and we may not be able to consistently achieve profitability or positive cash flow from operations, which may affect our business, operating results, and financial condition. negatively, ” the company officially stated, adding that: “ Although we generated a net income of USD 322.3 million in 2020, we incurred a net loss of USD 30.4 million in 2019. ”
Coinbase also confirmed that it is using Goldman Sachs, JP Morgan Securities, and Citigroup to assist them regarding some listing-related matters.
As for the data that was released, the form reveals that the exchange recorded direct income of USD 1.1 billion in 2020, a significant increase of USD 482 million in 2019. About 96% of this income is derived from fees of transactions charged to users, and the rest comes from subscription services. Additionally, it is reported to have generated an additional $ 136 million in revenue from Coinbase asset sales to conduct OTC transactions.
For its part, the exchange did not specify the date of the listing, but it is estimated that it will be in the coming months.