By Samuel Indyk
Investing.com – Cryptocurrency exchange Coinbase has reportedly pushed back its plans to go public until April after plans to list this month slipped, according to a report on Bloomberg.
The company is planning to shun the traditional IPO method and instead plans to go public via a direct listing. In a direct listing, investors can begin selling their holdings as soon as a company begins trading, rather than waiting for the expiration lock-up period.
There was no reason given for the delay, other than the news that the US Securities and Exchange Commission (SEC) has been reviewing the company’s plans for its direct listing.
CFTC Settlement
There had been some speculation that part of the hold-up may be due to the Commodity Futures Trading Commission (CFTC) investigation of the cryptocurrency exchange. In a release on Friday, the CFTC announced the had reached a settlement with Coinbase whereby Coinbase would pay a $6.5mln penalty for false, misleading, or inaccurate reporting and wash trading.
“Reporting false, misleading, or inaccurate transaction information undermines the integrity of digital asset pricing,” said Acting Director of Enforcement Vincent McGonagle. “This enforcement action sends the message that the Commission will act to safeguard the integrity and transparency of such information.”
Financials
When Coinbase published their latest financial statements alongside plans to go public, the company revealed it was profitable, unique for a tech company about to go public. Revenue more than doubled in 2020 as users increased to 43mln.