Never before seen disclosures of a crypto-unicorn. Tempting details before a historic Nasdaq quote. Another complex plot in the midst of a spike in bitcoin and the wider cryptographic space.
This is Coinbase, the US-based crypto exchange that is in the process of being listed directly on the market later this year. An important step along that path was taken on Thursday, when the company’s S-1 deposit, a draft of what was filed confidentially with the SEC in December, went public.
Someone can be excused for feeling a little dizzy amid the avalanche of information that came out today about Coinbase, so let’s recap the big parts and the main elements of the S-1.
(If you’re a Research subscriber, don’t miss out on the in-depth exploration of the Coinbase team, its history and the intricacies of its multifaceted business).
Volumes, recipes and more
The Block Research team created a series of useful charts using data from S-1, including volume numbers and the division of Coinbase’s institutional and retail customer base.
The Coinbase lawsuit noted that in the fourth quarter of 2020, it had 43 million verified users on its platform – and 2.8 million users in monthly transactions. That is more than 1 million in the previous year.
Looking at the volume data, you can see the institutional footprint growing in Coinbase’s services – although more retail users have joined in the past few months at significant rates as well.
On the revenue side, Coinbase provided data only until the first quarter of 2019. However, available information shows steady growth from mid-2020, with a projected jump in revenue due to the recent trading activity in the first quarter of this year. year.
Key details of the S-1
S-1, as expected, went crazy about the implications of the file’s content. This includes speculation about unexpected financial gains for Coinbase insiders and investors that could reap significant gains, depending on the consequences of the company’s direct registration.
As The Block reported today, a few things in particular stood out about Coinbase’s deposit.
For example, we hear about some of the acquisitions that made headlines for Coinbase, including those for the crypto brokerage service Tagomi and, more controversially, the intelligence company Neutrino.
The S-1 also unveiled the Wall Street bigwigs that underpin Coinbase’s direct listing offering, with Goldman Sachs, Citi and others playing a key role in the exclusive public debut through a direct listing on Nasdaq.
Coinbase’s deposit also showed the degree of regulatory scrutiny that the foreign exchange firm has attracted in recent years. This includes what appears to be an ongoing investigation by the CFTC into a sudden Ether (ETH) accident in 2017 and SEC subpoenas, as well as from state agencies in California and Massachusetts.
Looking forward
Therefore, the S-1 is public. And now?
Well, for starters, the company can be expected to make its market debut next month, according to sources. It also appears to be trading at around $ 400, as indicated in the secondary market.
In the meantime, if you’re looking for food to ruminate before the direct list, listen to Thursday’s podcast episode The Scoop with Frank Chaparro and Larry Cermak of The Block, who explain the great details of the process and what they mean in the larger context of the crypto market.
© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or is intended to be used as legal, tax, investment, financial or other advice.