Coinbase, the cryptocurrency giant, has made an announcement on Thursday about the firm’s direct public listing that is highly anticipated. It stated that the listing will take place on 14th April. The firm also said that its earnings in the first financial quarter will be disclosed on 6th April, eight days prior.
What The Coinbase IPO Means
It is an unusual plan from Coinbase. Furthermore, reporting results days before offering the company’s shares publicly is extremely significant. As such, the results will provide even more guidelines to investors who will be trying to estimate the worth of Coinbase shares.
The announcement follows the publication of the company’s results in FY2020. This was a mandatory report that the company had to legally file before going public. The results reported a $322M profit for the year 2020 on a $1.2B revenue. In 2019, the company had reported a $30M loss on a $522M revenue.
The upcoming earnings report will be the company’s first time disclosing quarterly results publicly. With the immense bullish run that cryptocurrencies have been undergoing since December, the Q1 results are expected to be the company’s best financial quarter.
Furthermore, the upcoming earnings will also influence investors to-be and analysts’ final appraisal of Coinbase’s stock. Near the end of February, transactions among private shares had set a value of as much as $104B for the company. However, analysts had claimed that the value was too much. Recently, the company revealed that stock in private transactions had a $343.58 average selling price between 1st January and 15th March. That would result in the overall valuation being $68M.
In the previous month, the company had allowed anyone to ask anything from Brian Armstrong, the CEO, on Reddit. Questions ranging from Dogecoin to customer service were all addressed in the “roadshow”. SEC usually enforces a “quiet period” before any company goes public which marks the announcement as unusual.