Coinbase reveals healthy revenue growth, profit in listing application with SEC

Coinbase Global Inc on Thursday disclosed its regulatory filing to go public, revealing surging revenue growth and healthy earnings and setting the stage for a landmark stock market listing for the U.S. cryptocurrency exchange.

FILE PHOTO: A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken Dec. 8, 2017. REUTERS/Benoit Tessier/Illustration

REUTERS: Coinbase Global Inc on Thursday disclosed its regulatory filing to go public, revealing surging revenue growth and healthy earnings and setting the stage for a landmark stock market listing for the U.S. cryptocurrency exchange.

The procedural step of making its filing with U.S. regulators public brings Coinbase a step closer to listing its shares on the Nasdaq stock exchange, which would represent a landmark victory for cryptocurrency advocates vying for mainstream endorsement.

Coinbase said in December that it had confidentially applied with the U.S. Securities and Exchange Commission (SEC) to go public.

Reuters was first to report last July that Coinbase started plans for a stock-market listing and was exploring going public through a direct listing instead of a traditional initial public offering.

Many cryptocurrencies have struggled to win the trust of mainstream investors and the general public due to their speculative nature and potential for money laundering.

The landmark decision from the SEC could be a major boon or blow to the legitimacy of cryptocurrencies, and determine which ones are allowed to trade on the platform.

In its latest filing, Coinbase cautioned that it was yet to receive the relevant approvals from regulators that would allow it to trade certain securities.

“Although we have applied to operate an ATS (alternative trading system) in the United States that would allow us to trade crypto assets that are deemed “securities” under U.S. federal securities laws, we have not yet received regulatory approval to, and do not currently, operate an ATS for trading of crypto assets deemed to be securities,” Coinbase said in its filing.

The listing would come after the price of bitcoin, the world’s biggest cryptocurrency, ended 2020 up more than 300per cent and earlier this month hit a record high of US$58,354 with a market capitalization above US$1 trillion.

Bitcoin has come off its recent highs this week as investors grew nervous at sky-high valuations.