Coinbase, a leading American digital currency exchange planned its foremost and virtual Investor Day on August 14. The news of the first Investor Day marked across the significant crypto news sites. Coinbase will now allow a way out for the early investors with an approach of direct listing. Recently, it was known that the company plans to go public; however, it requires approval from the Securities and Exchange Commission.
Now, you may be wondering what this Investor Day is and why it actually matters for the investors? Here are some of the crucial points that you should go with and understand how Investor Day is crucial for the investors.
What is Coinbase Investor Day?
Investor Day is the first-ever virtual event scheduled by Coinbase on Aug 14. The declaration of the event came after the rumors came out that the crypto exchange may go an IPO either current or next year. The event is liable to attract investors and crypto whales who are prepared to invest in startups. The meeting will be helpful for investors to show greater return possibilities. Moreover, the event can serve as a game-changer in the world of the stock market. The investors will be kindly invited to Investors Day, where the company will talk publicly about their financial results.
With such an innovative wave of cryptocurrency events, going public with Investor Day will beat the official existence of digital assets in everyday life.
Why Coinbase Investor Day Matters?
Daniel Harrison, the Coinbase spokesperson, stated that the investor day would serve as an opportunity to listen to their perspective on the cryptocurrency. He continued that the virtual event will assist a diverse understanding of blockchain technologies and cryptocurrencies. It will be an immense opportunity to learn about the role of Coinbase in the ecosystem. Moreover, from his statement, it’s not definite if the meeting is related to the rumored efforts to go public.
Jamie McGurk, a former operating associate at Andreessen Horowitz, wrote that the Coinbase would invite the investors to the virtual event. He marked that an investor day is likely to be a forerunner of a planned direct listing. It is worth to note that A16z is one of the well-known investors at Coinbase. On the Investors Day, the Coinbase associates will talk about the historical financial results of the company.
How Will Direct Listing Be Helpful For Investors?
Direct listings permit existing investors, including venture capitalists, to do business with equity in a public market. However, the company itself is not selling any new shares. Previously, Slack and Spotify, Silicon Valley beloved followed this route. It lessens the use and hustles of traditional Wall Street intermediaries. Such a course does not take in a public offering, but it makes them more successful. A direct listing enables the direct sale of investor’s holdings with no period.
CEO of Coinbase, Reuters reported that the company was looking for legal requisites of filing for a public offering with the SEC. Though, the company itself does not lift up extra money or issue new shares. However, in a direct listing, the investors in the private market become able to sell their holdings.
What Are Coinbase’S Plans With Direct Listing?
Jamie McGurk mentioned that the company could access the public capital markets like a seasoned issuer. Moreover, it would be only in case if more financing is required in the future. It is one of the greatest settlements of being public. One claimed that a direct listing would make an enormous sense for Coinbase. It will allow many people in crypto to foresee a growing trajectory to the market rapidly.
Several new companies, including Compound and Kyber, employ inventive methods to widen the ownership of their platforms to the consumers. Thus, a direct listing will serve as a competent way to provide Coinbase clients with admittance to shares in the company. According to Crunchbase, Coinbase has elevated a total of $547 million since its origin in the year 2012. In October 2018, its Series E round valued the company at $8 billion.
The virtual event is probably going to be an enormous eye-opener to the investors and US regulators. Investor day will serve as a great platform for Coinbase that has not experienced probably the high level of technology at such a high level.