Monday, December 5, 2022

Coinbase to VC Investors: No Thanks, We’re Good for Now

Coinbase to VC Investors: No Thanks, We’re Good for Now

Popular U.S. cryptocurrency exchange Coinbase had an explosive financial performance in 2017, eclipsing the impressive $1 billion USD revenue mark for the year. Now, Coinbase is having to beat back venture capitalist investors who want in before the exchange inevitably runs what would be a rightfully hyped Initial Public Offering (IPO).  

Also read: Nasdaq Wants Their Bitcoin Futures to Be Unique from Competitors

Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates:

Coinbase: No Selling, Shareholders

In a clear case of “too much of a good thing,” Coinbase is not only dealing with hyper-growth in its user base but also with a surge of venture capitalist interest in the exchange — interest that is not being reciprocated in the slightest at present.

Silicon Valley wants in on the “Bitcoin Boom”

It’s no surprise, of course, why Silicon Valley is abuzz over America’s top bitcoin gateway: Coinbase exceeded its revenue projections in 2017 by a whopping $400 million. By Christmas Day, the exchange had officially topped $1 billion in earnings on the year.

The consequence of that success?

A persistent, even savage, wave of brokers and private investors prodding Coinbase shareholders to part with their shares for a pretty penny. But there will be nothing going on that front for now; the company reiterated in a recent statement that it’s reminded its employees such deals are impermissible:

“As a private company, Coinbase does not allow trading of stock on secondary markets for a variety of reasons, including the fact that there is not full and equal information available to the market. We will take appropriate action if we find people have sold Coinbase shares in violation of our agreements not to do so.”

Coinbase Raised $100m Just Months Ago

No amount of interest from brokers and investors will change the fact that Coinbase already raised $100 million in a fresh fundraising round only half a year ago. Accordingly, the exchange likely won’t be rushing to have another round of funding in such short order.

In fact, according to a new report from Recode, a handful of exchange insiders have suggested the company will never need to endure another fundraising round again, instead being set to go straight for an IPO next.

If this circumstance materialized, then there’d undoubtedly be a lot of big-wig investors on the outside looking in wishing for what could’ve been.

Where do you stand? Do you think America’s top exchange should go straight for an IPO, or would they be best served by doing a few more rounds of funding? Let us know what you think in the comments below. 

Images via Motherboard Vice, Entrepreneur

Bitsonline Email Newsletter