Never-before-seen revelations of a crypto unicorn. Tantalizing details ahead of a historic Nasdaq listing. Another complex story amid a bullish period for bitcoin and the broader crypto space.
That’s Coinbase, the US-based crypto exchange that’s on its way to a major direct listing later this year. A key step in that path was taken Thursday when the firm’s S-1 filing, the draft of which was confidentially submitted to the SEC in December, was released.
One might be apologized for feeling a bit groggy amidst the flood of information coming out today about Coinbase, so let’s recap the big pieces and main elements of the S-1.
(If you’re a Research subscriber, don’t miss an in-depth exploration of the Coinbase team, their history, and the ins and outs of their multifaceted business.)
Volumes, revenue and more
The Block Research team created a series of handy charts using data from the S-1, including volume figures and the breakdown of Coinbase’s institutional and retail customer base.
Coinbase’s filing noted that as of Q4 2020, it had 43 million verified users on its platform and 2.8 million monthly transaction users. That’s more than 1 million from the previous year.
Looking at the volume data, you can see the growth of the institutional footprint in Coinbase services, although more retail users have also been onboarding in recent months at significant rates.
On the revenue side, Coinbase only provided data from Q1 2019. However, available information shows steady growth since mid-2020, with a projected jump in revenue due to recent trading activity in Q1 of this year.
S-1 key details
The S-1, unsurprisingly, caused the implications of the file’s content to be discussed. That includes speculation about the financial windfall for Coinbase insiders and investors who can make significant gains, depending on the consequences of the direct listing of the company.
As The Block reported today, a few things, in particular, stood out about the Coinbase presentation.
For example, we learned about some of the acquisitions that headline Coinbase, including crypto brokerage service Tagomi and, more controversially, intelligence firm Neutrino.
The S-1 also revealed the big Wall Street hairs that underpin Coinbase’s direct listing offering, with Goldman Sachs, Citi and others playing a key role in the one-off public debut via a direct listing on Nasdaq.
Coinbase’s presentation also showed the degree of regulatory scrutiny that the exchange company has attracted in recent years. That includes what appears to be an ongoing investigation by the CFTC into a sudden Ether (ETH) crash from 2017 and subpoenas from the SEC, as well as state agencies in California and Massachusetts.
Looking to the future
So the S-1 is public. Now what?
Well, for starters, one could expect the company to make its market debut next month, according to experts. It also appears to be trading at a price of around $ 400, as the secondary market has indicated.
In the meantime, if you’re looking for forage to chew on before the direct listing, listen to Thursday’s episode of The Scoop podcast featuring The Block’s Frank Chaparro and Larry Cermak, who break down the great details of the performance and what they mean. in the broader 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 intended to be used as legal, tax, investment, financial or other advice.