Coinbase files for IPO with the SEC

Coinbase filed for its IPO with the SEC on Thursday as the cryptocurrency market soars. They announced their plan to go public in December. According to Axios, the company’s valuation is around $100 billion.

Coinbase will list on the Nasdaq as a Class A common stock under the ticker symbol COIN and offer its shares using a direct listing instead of a traditional IPO.

After losing money in 2019, they’ve revealed that their revenue doubled in 2020. The company reports that revenue is very dependent on the Bitcoin market.

In the filing, they noted

“Our net revenue is substantially dependent on the prices of crypto assets and volume of transactions conducted on our platform. If such price or volume declines, our business, operating results, and financial condition would be adversely affected.”

This is the primary risk factor for investors.

With the market reaching a market cap of $1 trillion in recent weeks, the cryptocurrency market remains extremely volatile. It has tendencies for huge spikes and declines in a matter of minutes.

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