Feb. 25, 2021, 10:01 a.m. EST

Coinbase Aims for Public Status

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Feb 25, 2021 (Baystreet.ca via COMTEX) -- Cryptocurrency exchange Coinbase on Thursday filed to become a public company and revealed that its revenue more than doubled last year.

According to the filing, Coinbase had net revenue of $1.14 billion in 2020, up from $483 million the previous year. The company also reported net income of $322 million for the year after posting a loss in 2019.

The company said it has 43 million verified users as of the end of 2020, with 2.8 million making monthly transactions. Trading in bitcoin and ethereum made up 56% of users' trading volume, Coinbase said.

The company will use a direct listing to offer its shares instead of a traditional initial public offering.

A direct listing is an alternative to an IPO, and it involves investors and employees converting their ownership stakes into stock that's listed on an exchange.

Founders have become increasingly disenchanted with the IPO process in recent years, leading to a boom in direct listings and special purpose acquisition vehicles. Streaming music giant Spotify /zigman2/quotes/207488629/composite SPOT -3.27% also went public through a direct listing.

The move comes amid a boom in cryptocurrencies broadly, with bitcoin in particular gaining more acceptance among mainstream companies and investors. Large companies including Square /zigman2/quotes/205989440/composite SQ +0.07% and Tesla /zigman2/quotes/203558040/composite TSLA +0.61% have been buying bitcoin in recent months.

Bitcoin was trading at just under $52,000 per coin on Thursday, according to coin metrics.

The crypto asset had never traded above $20,000 prior to December.

Reports say Coinbase's stock would trade on the NASDAQ.

COMTEX_381719303/2559/2021-02-25T10:01:03

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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US : U.S.: NYSE
$ 271.20
-9.17 -3.27%
Volume: 1.26M
April 20, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$56.17 billion
Rev. per Employee
N/A
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/zigman2/quotes/205989440/composite
US : U.S.: NYSE
$ 245.50
+0.17 +0.07%
Volume: 12.58M
April 20, 2021 4:00p
P/E Ratio
628.52
Dividend Yield
N/A
Market Cap
$119.60 billion
Rev. per Employee
$1.73M
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 718.99
+4.36 +0.61%
Volume: 35.61M
April 20, 2021 4:00p
P/E Ratio
1,144
Dividend Yield
N/A
Market Cap
$709.19 billion
Rev. per Employee
$445,694
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