Coinbase announced that it had filed some documents with the United States Securities and Exchange Commission (SEC). Specifically a confidential S-1, an initial step to listing your shares on a national stock exchange.
In fact, the confidential S-1s are kept secret for up to three weeks before the broadcaster starts their tour. Which is a public relations push in which the publicly traded entity tries to sell its value to potential investors.
Is Coinbase preparing to go public?
To recall, the first information about Coinbase’s plans started in July. When the Reuters news agency revealed that the Exchange was preparing to go public.
Currently, the main exchange is preparing itself as the most accessible bet on Wall Street to date in cryptocurrencies.
Certainly, according to a blog post: Form S-1 is expected to go into effect after the SEC completes its review process. Subject to market and other conditions».
To this end, the blog post indicates the following words:
“Coinbase Global, Inc. announced that it has confidentially filed a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC).”
Furthermore, he added: «This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities. Any offer, request or offer to buy or sell securities will be made in accordance with the registration requirements of the Securities Act of 1933».
As a fun fact, Coinbase said it filed it confidentially with the Securities and Exchange Commission. That is the first formal step on the long road to an Initial Public Offering. But, the document is not yet available on the SEC portal, leading the media to wonder if it is really an IPO.
It should be said, an Initial Public Offering is an operation that is carried out through the stock market. Through which a bidder puts up for sale a financial asset of a company or a society.
Two experts join
In fact, Brian armstrong, CEO and founder of Coinbase, said former Cisco CFO Kelly Kramer will join the board of directors, as chair of Coinbase’s Audit and Compliance Committee. Likewise, there is Marc Andreessen as Director of the Board.
It is also true that the next steps that Coinbase must follow to go public would be, to file forms S-2 and S-3. Also, prepare an informative prospectus for investors.
Likewise, it must include information on the issuer, its shareholders, commercial and financial information, on the issuer’s activity, risk factors and the destination of the funds resulting from the investment.
With this in mind, the SEC should evaluate the request and issue a comment letter on the request. In case of finding a defect, it will issue a letter of defects to the issuer, with an explanation of the defects observed.
Ultimately, if Coinbase were to gain SEC approval for listing, it would spell a historic achievement for the ecosystem.
I say goodbye with this quote from Wayne Dyer: «The search for approval becomes a wrong zone only when it becomes a need rather than a desire».