The leading US cryptocurrency exchange Coinbase has moved its extremely expected stock market listing till April. The firm was expected to go public through a direct listing on the stock exchange this month but altered its strategies because of certain concerns.
Coinbase has pushed back its scheduled direct listing on the NASDAQ stock exchange to April as the Securities and also Exchange Commission (SEC) reviews its plan
Coinbase did not supply any type of factors for the hold-up. In its report, Bloomberg pointed out people close to the issue as keeping in mind that the SEC evaluation of the San Francisco-based exchange’s plan for a direct listing had actually affected the procedure.
The crypto exchange initially revealed that it was going public on the NASDAQ stock market in January and had a valuation over $70 billion. Recently, Coinbase registered 114.9 million shares to be traded on the securities market when the company goes public.
Coinbase opted to go public by means of the straight listing process rather than the common going public (IPO) that many companies make use of. Direct listing allows very early financiers to sell their holdings once the business begins trading on the stock exchange. Unlike the IPO, investors do not need to wait on the expiry of a lockup duration prior to they can unload their holdings.
According to the SEC filing recently, shares from investment company like Andreessen Horowitz as well as Union Square Ventures are amongst those that would be traded once Coinbase goes public.
The straight listing of Coinbase would certainly be amongst the biggest the NASDAQ exchange has viewed as a lot of companies prefer going public using an IPO.
Recently, Coinbase settled its situation with the Commodity Futures Trading Commission (CFTC). The regulatory agency had actually purchased the crypto exchange to pay $6.5 million for taking part in incorrect, imprecise or misleading reporting as well as clean trading. According to the permission order released by the CFTC, Coinbase engaged in those tasks between 2015 and 2018.