Coinbase Sets A Date; April 14 For IPO

Coinbase is planning to begin trading April 14, Bloomberg reported.

U.S. Securities and Exchange Commission (SEC) declared the company’s registration statement effective as of Thursday (April 1), according to Bloomberg. Coinbase is the largest cryptocurrency exchange in the U.S.

Coinbase’s Nasdaq direct listing was pushed back from an earlier date in March, Bloomberg reported. Similar to what happens with other direct listings, a reference price guide will become available the night before the company goes public to help investors and let the shares begin trading.

The SEC had been reviewing Coinbase’s plans, which was the reason for the delay. The SEC, according to Bloomberg, has become flooded with special purpose acquisition companies (SPACs) and other initial public offerings (IPOs).

The Commodity Futures Trading Commission, a different federal regulator, said it had reached a $6.5 million settlement deal with Coinbase, which resolved claims about the company reporting inaccurate data about transactions, along with a former employee reportedly engaged in “improper trades,” Bloomberg reported.

Coinbase plans to go public via direct listing, so it won’t raise any new capital. The company was valued at around $90 billion in its last week of trading on the Nasdaq’s private market, according to Bloomberg. Its direct listing will be the first major one to take place on the Nasdaq. All of the previous listings were on the New York Stock Exchange, including those by Spotify, Slack, Asana and Palantir.

PYMNTS reported on Coinbase’s trading debut delay earlier this year. The company’s backers have registered as many as 114.9 shares, which takes advantage of rules saying direct listings can allow investors to sell their shares instantaneously, rather than waiting for a lockup period to expire like what would happen during a regular IPO.

Coinbase has been making money as of late, with the company going from a loss to a profit last year.