The largest U.S. based crypto exchange Coinbase has decided to delay its direct public offering for one month according to anonymous sources. The company initially planned to go public this March but has shifted it to April. However, Coinbase has not given any explanations on the turn of events.
Coinbase Holds Off Listing Plans Until Next Month
There has been much anticipation from crypto fans regarding the company’s listing. The company filed for a direct listing on NASDAQ on February 25 to start trading in March. However, the plans have been postponed till April. According to a source, the SEC is currently reviewing the company’s plans to go live.
A direct listing is an alternative to the traditional IPO (Initial Public Offering). Many companies prefer this because it allows existing shareholders and employees to sell shares directly to the public. This method offers greater liquidity than the regular IPO and eliminates intermediaries like underwriters.
What Coinbase Listing Mean to Investors
Earlier this week the company proposed to issue close to 115 million shares of Class A common stock. The shares will be listed on NASDAQ under the ticker COIN. In anticipation of the listing, the valuation of the exchange has grown to more than $68 billion, as contrasted to its 8 billion valuations in 2018.
However, the Coinbase representative has declined to give any comments regarding the push back to April. Investment firms like Andreessen Horowitz and other investors of the company would be able to trade their holdings once the listing happens next month.
For crypto enthusiasts, the listing is a huge leap towards the mainstream adoption of cryptocurrency. Right now, the company renders its services to about 43 million retail users, 115,000 partners, 7,000 institutions, developers and many others. However, these values are expected to rise with its listing as many more embrace Bitcoin.