Cryptocurrency trader Coinbase wants to go public via ‘direct listing’

Cryptocurrency trader Coinbase goes public. The company does this through a direct listing, and not through an initial public offering. This allows Coinbase to sell shares to traders itself.

The company writes in a blog post that it opts for that approach. Coinbase Global Incorporated is going public with a direct listing, which some other tech companies such as Spotify also opted for. With such a direct listing it is possible to sell shares directly to investors without the intervention of, for example, banks that can determine the price. “We believe direct listing is more in line with the crypto and Coinbase ethos as it opens up access and opportunities for investors,” the company’s CFO wrote in an internal memo, which is owned by Fortune.

Coinbase announced in December that it would go public. That desire is probably driven by the explosively rising value of bitcoin. It is not known when exactly the crypto giant wants to go public or how much shares will cost. Analysts speculate on a value of $75 billion. The IPO would make Coinbase one of the largest public cryptocurrency traders.