Messari Values Coinbase at $28 Billion Ahead of Public Offering 

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After months of speculation, top cryptocurrency exchange Coinbase has announced plans to file for an Initial Public Offering (IPO). While the company has yet to release its planned valuation, research firm Messari is putting a possible value peg on the firm.

Coinbase’s Business Has Grown Significantly

Last week, New York-based crypto research company Messari published a report where it dissected Coinbase’s valuation as the exchange gears up for its IPO.

In its report, Messari considered several business aspects Coinbase has incorporated, from debit cards and core exchange functions to trading and custody. In an overview, the research firm valued the exchange at $28 billion. Messari highlighted the exchange’s largesse, pointing out that Coinbase serves around 35 million customers and handles over $1 billion in trades daily.

With Coinbase Custody also rallying to over $20 billion in assets under management (up from $7 billion in 2019, Coinbase is riding the crypto high better than most firms in the industry.

The exchange’s previous fundraising round saw it achieve unicorn status, with $8 billion in valuations as of 2018. However, considering how much the industry – and, by extension, Coinbase – has grown since then, its value should have skyrocketed as well.

All Hands On Deck to Prepare for the IPO

Reports of an IPO have followed Coinbase for the better part of 2020’s second half. However, the exchange finally took the plunge last week, announcing that it had filed a Form S-1 with the Securities and Exchange Commission (SEC).

The Form S-1 is not an official IPO prospectus. It essentially provides a possibility for a future listing, with Coinbase pointing out that the SEC will need to review it before a filing can be done. Reviews for its position shouldn’t be too much of a problem, especially considering that Coinbase has a reputation for playing nice with government agencies and regulators.

Combined with the exchange’s track record of impressive service, there is little doubt that the exchange will have any significant hiccups on its road to an IPO.

The exchange is already looking ahead, with Business Insider reporting last week that it had tapped leading investment bank Goldman Sachs to lead its offering. As the news medium noted, Coinbase has been linked to Goldman through Fred Erhsam, one of its co-founders, who previously worked as a trader for the investment bank.

Ersham reportedly worked at Goldman between 2010 and 2012 before joining Armstrong to build Coinbase. While he left the exchange in 2017, he still maintains a board position. No party has given any additional details, suggesting that Coinbase is working behind the scenes and waiting for the SEC to ratify its Form S-1.

Remember, all trading carries risk. Past performance is no guarantee of future results.
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Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.