Coinbase Plans to Go Public Through a Direct Listing
Presumably, investment banks were disappointed with the missed opportunity and revenues. Coinbase is popular among cryptocurrency traders and has grown its user base and revenues over recent years. The company was founded in 2012 and has expanded rapidly, cementing itself as the largest digital currency exchange in the US.
Coinbase is going public during a massive resurgence of cryptocurrency interest. Several cryptocurrencies have shattered their 2017 highs and are gaining interest from new investors. Bitcoin for example is trading at around $34,000, up more than 260 percent in the past year.
Coinbase isn't the only company that has chosen a direct listing over an IPO, in what appears to be a growing trend. Spotify, Slack, Palantir, and Asana have all gone public through direct listings in recent years. Popular game Roblox is also expected to go public through a direct listing later this year.
Direct listings allow companies to avoid diluting existing shareholders and avoid hefty investment banking fees required to take a company public.
There has been no indication of when Coinbase will go public, but it is expected in the near future.