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The shares of Coin Base, the largest digital currency exchange in the United States, will go public in ten days


With about ten days left until the IPO of Quinn Base, the US digital currency exchange will soon release its earnings report for the first quarter of 2021. This report helps determine the price per share of Coin Bass.

to the Report Digital Currency industry giant Coin Base announced Thursday that his stock will be listed directly on US stock markets on April 14th. Digital currency investors have been waiting for a long time for Coin Base shares to go public, as experts believe this could have a positive impact on the market in both the short and long term.

Eight days before the launch, on April 6, Coin Bass will release its financial report for the first quarter of 2021. This is unusual and interesting in its own right, as this financial report is released just a few days before the public offering of the stock, and it can be a guide for investors to estimate the value of each share of Coin Base.

A few weeks ago, Coin Bass released his Comprehensive 2020 Financial Report as part of the publicity process. That report showed that Coin Bass earned $ 320 million from $ 1.2 billion in revenue last year. This number shows a strong growth compared to 2019; When Coin Bass made a net profit of $ 522 million, he ended up losing $ 30 million.

This will be the first time the company has disclosed its earnings in just a quarter of a year with the release of Coin Bass’ first quarter financial report. Given the historical uptrend that the digital currency market has experienced since December 2020 (winter 99) to date, the first quarter of 2021 is likely to be the best first quarter in the company’s history, and a large portion of the exchange’s revenue is likely to come from commissions. .

First-quarter earnings reports are also likely to prompt analysts and even investors to reassess the value of Coin Bass shares. In late February (early March 1999), some private equity trading showed that the value of Coin Bass could reach $ 104 billion; The number, according to analysts, is very high. Coin Bass recently revealed that the average price of a stock traded in private trading between January 1 and March 15 was $ 343, representing a total value of $ 68 billion.

With the release of Quinn Base’s first quarterly report, the company’s valuation is likely to increase to $ 343 per share.

Coin Bass’ entry into the public market can be a key turning point for the entire digital currency industry, as well as providing a good perspective on how Wall Street responds to an industry with unique cycles and fluctuations.

For example, it is unclear how public markets will react if the digital currency market enters a sharp downturn again, similar to February 2018 (also known as the “winter of digital currencies”). In 2018, the price of Bitcoin and other digital currencies fell by more than 65%.

The shares of Coin Base, the largest digital currency exchange in the United States, will go public in ten days
Bitcoin price trend from early 2018 to early 2019

Coin Bass’ decision also coincided with an unusual bubble period in public markets.

In the last six months, the stock prices of several companies have grown by more than 100% on the first day of trading. In recent months, we have also seen an influx of investors to invest in “targeted buyer companies” or SPACs. A special-purpose acquisition company is a kind of paper company that is listed on the stock exchange just to buy a private company. Thus, the IPO of a private company no longer needs to go through initial public offering processes. All of these factors go hand in hand to bring global stock markets to record highs. However, the low number of initial public offerings last week indicates that the recent jump is slowing down.

In the case of Coin Base, the company does not intend to implement the current IPO method. In the usual way, the company cooperates with Wall Street banks and for the first time sells its shares to wealthy investors at a special discount. Instead, Coin Bass uses a direct listing method in which the company does not issue new shares, but allows employees and early investors to transfer their shares to others at a specified market price.

Last month, Coin Bass took another unusual step toward publicizing himself. Brian Armstrong, the company’s CEO, appeared on the Reddit platform on an “Ask Me Anything You Want” program, or “AMA,” to answer users’ questions about the initial public offering. Normally, corporate executives go to the Road Show to answer questions about some of the richest investors to answer about the initial public offering of their shares in the US market. For the first time, the CEO of a multibillion-dollar company has come forward to answer to Reddit users about the public offering of its shares; Where most of its users are regular users who work in various forums – from pursuing customer service to supporting Dogecoin.

Coin Bass’s decision to release a financial statement just before the IPO is highly unusual is that companies on the verge of going public usually have to enter a “period of silence” under US Securities and Exchange Commission regulations and cut off public relations as much as possible. کردن.

In this case, the release of the financial report does not appear to include a period of silence. During the silent period, companies are still allowed to publish information about the business process, provided that no direct information about the future of the company is provided.

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