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The 4 Big-Name Crypto

Companies Going Public in 2021

Crypto companies are abuzz with talks of crypto IPOs. But let’s put this in context.

On January 7th, 2021, crypto became a trillion-dollar asset class for the first time in history. The combined market cap of all cryptocurrencies added up to one trillion dollars. A momentous achievement!

It’s not just prices that are going up either. As new money flows into crypto, all of the best crypto companies are getting bigger as well.

That growth is bringing us to the point where it makes sense for some of these companies to offer cryptocurrency IPOs (the purchase of previously private shares to the public).  

The 4 Big-Name Crypto

In this article we’ll look at the proposed Coinbase, BlockFi and Bakkt IPOs. These three crypto companies have all announced that they’re planning to go public in 2021.

At the end of the article we’ll announce one more company that will be added to that list. We haven’t been able to publicly share these details until now, which means that you’ll be the first to hear about it!

1) Coinbase IPO

Coinbase is arguably the most well-known cryptocurrency company. Coinbase has a dead-simple onboarding platform for new investors where you can buy Bitcoin and other cryptocurrencies with a debit card or bank transfer.

For advanced traders there is Coinbase Pro, a popular crypto exchange with an order book and various order types.

According to a recent article by NASDAQ, Coinbase has 43 million users who live in more than 100 countries. The platform is currently holding approximately $25 billion in crypto-assets and employs more than 1,000 people.

Given the size of the platform, it’s no surprise that Coinbase wants to go public. They could use the additional funds in several ways:

  • Infrastructure improvements. Coinbase is famous for going offline during big swings in the Bitcoin price
  • Better financial services. Coinbase could build out new financial products like interest on BTC deposits or a deeper integration with DeFi
  • Blockchain developer fund. Square, the company behind the Cash App, funds a developer who is improving the Bitcoin mining pool software.With all of the capital that an Initial Public Offering (IPO) will bring, Coinbase could do the same

What we know at the moment is that Coinbase will be listed on the NASDAQ under the ‘COIN’ ticker, and that the IPO will be a direct listing, meaning that initial investors will all be able to participate at the same price.

The IPO is slated to go live sometime this month.

In terms of valuation, the last time Coinbase raised money was through a final Series E funding round in 2018. At the time Coinbase was given a valuation of $8 billion, but presumably that valuation has increased in the last three years.

We’ll be keeping a close eye on the Coinbase IPO since this will be the largest crypto company to go public (and possibly the first, depending on when the Initial Public Offering takes place).


2) BlockFi Crypto

BlockFi is a type of crypto bank. Unlike a traditional bank, however, BlockFi actually pays interest on deposits. For example, as of publication the interest rate on USDC deposits is 8.6% and Bitcoin deposits can earn 6%. Real-time interest rates on BlockFi are available here.

In addition to interest on deposits, BlockFi also offers crypto-backed loans. Users can deposit Bitcoin and use it as collateral to take out a loan.

BlockFi was founded in 2017 and has a good reputation in the cryptocurrency space. So far, BlockFi has already raised $158 million through various funding rounds, and they plan to do a series D round before going public.

If the BlockFi does end up going public it will probably do so via a SPAC, sometime in Q3 or Q4 of 2021.

SPAC stands for Special Purpose Acquisition Company; a “blank check” company that exists on paper but doesn’t have a real business or product.

This blank check company raises money by going public then uses that money to acquire another company. By merging with an existing business, a SPAC can bring the company into the public markets without an official BlockFi IPO.


3) Bakkt IPO

The 4 Big-Name Crypto

Bakkt should have a special place in the hearts of every crypto investor who was around for the 2017 peak and subsequent bear market. If you remember, Bakkt was going to save crypto!

As soon as the Bakkt derivatives platform came online the buyers would return, the price of Bitcoin would quickly blow past its previous all-time-high and everything would be right with the world.

None of that happened.

Instead, Bakkt launched and… Nothing happened. In fact, nothing happened for a long time. Since its launch Bakkt has struggled to generate much interest from traders. Even now, Bakkt is not generating significant volume.

As of January 19th, 2021, the 24 hour futures trading volume on the CME exchange is $4 billion. On Bakkt the trading volume is only $60 million.

Despite this lack of liquidity, The Block has reported that Bakkt will be going public via a SPAC in 2021. The initial valuation for Bakkt is $2.1 billion, which should give it plenty of ammunition to build out its business following a Bakkt IPO.


4) Exodus Public Offering

The 4 Big-Name Crypto

Coinbase, Bakkt and BlockFi are not the only companies going public in 2021. We’re pleased to announce that Exodus has filed with the Securities and Exchange Commission (SEC) to sell $75 million in shares through a Regulation A+ offering.
 

Exodus may potentially be the first company in the world to launch a Regulation A+ compliant common stock token that will live on the blockchain. This is history in the making because traditionally, blockchain ICOs leave investors with no legal ownership.

Holders of Exodus tokens, however, will become actual owners of Exodus.  

But it doesn’t end there. Exodus shares will be able to be purchased with Bitcoin, Ethereum, and USDC within the wallet interface.

To learn more, visit our investor portal at http://www.exodus.com/investors  


4) Will Crypto IPOs be a success?


The lack of a Bitcoin ETF is one of the key reasons these crypto IPOs could be successful. Institutional investors who want crypto exposure, but don’t want to hold BTC, will be able to buy Coinbase or Bakkt.

The bigger the cryptocurrency ecosystem becomes, the better these companies will do. And Exodus will be right up there with them.


Forward-looking statements

This communication contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “believe,” or other comparable terminology.

Forward-looking statements in this document include, but are not limited to, statements about our future financial performance, our business plan, our market opportunities and beliefs and objectives for future operations.

These statements involve risks, uncertainties, assumptions and other factors that may cause actual results or performance to be materially different.

More information on the factors, risks and uncertainties that could cause or contribute to such differences is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion & Analysis” sections of our offering statement on Form 1-A. We cannot assure you that the forward-looking statements will prove to be accurate.

These forward-looking statements speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements

Testing the Waters

This communication may be deemed “testing the waters” material under Regulation A under the Securities Act of 1933. We are not under any obligation to complete an offering under Regulation A.

We will only be able to make sales after the Securities and Exchange Commission(SEC) has qualified the offering statement that we have filed with the SEC. The information in that offering statement is more complete than the information we are providing now, and could differ in important ways.

You must read the documents filed with the SEC before investing. No money or other consideration is being solicited, and if sent in response, will not be accepted.

No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement filed by the company with the SEC has been qualified by the SEC.

Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification.

An indication of interest involves no obligation or commitment of any kind. Any person interested in investing in any offering of Exodus’s Class A common stock should review our disclosures and the publicly filed offering statement and the preliminary offering circular that is part of that offering statement at https://www.sec.gov/Archives/edgar/data/1821534/000114036121006439/nt10013846x8_1a.htm.

Exodus is not registered, licensed or supervised as a broker dealer or investment adviser by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or any other financial regulatory authority or licensed to provide any financial advice or services.

No offer to sell securities or solicitation of an offer to buy securities is being made in any state where such offer or sale is not permitted under the blue sky or state securities laws thereof. No offering is being made to individual investors unless and until the offering has been registered in that state or an exemption from registration exists.

Exodus intends to complete an offering underTier 2 of Regulation A and as such intends to be exempted from state registration pursuant to federal law.

Although an exemption from registration under state law may be available, Exodus may still be required to provide a notice filing and pay a fee in individual states.

No offer to sell securities or solicitation of an offer to buy securities is being made in any international jurisdiction where such offer or sale is not permitted under the securities laws thereof.

No offering is being made to individual investors unless and until the offering has been approved by a competent authority in such international jurisdiction or is made in accordance with an exemption from the relevant international jurisdiction’s securities laws.

The 4 Big-Name Crypto

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Bitcoin and Ethereum prices hint at recovery as March 2021 begins

Bitcoin and Ethereum prices hint at recovery as March 2021 begins

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