The landmark direct listing of Coinbase on Nasdaq marked a significant milestone for the cryptocurrency industry. Closing at $328 on its first day—a 31% increase over its reference price—the exchange reached a market capitalization exceeding $85 billion. To put that in perspective, Facebook and Uber are valued at around $1.04 trillion and $82 billion, respectively.
This notable event arrives amid a powerful crypto bull market. The total market capitalization of cryptocurrencies has surged beyond $2 trillion, reflecting growing mainstream adoption and investor confidence. Many analysts believe Coinbase is just the first of many major crypto firms that will seek public listings in the near future.
Here’s a look at some of the most prominent cryptocurrency companies that may follow Coinbase’s path to the public markets.
Kraken
Kraken, a major U.S.-based cryptocurrency exchange, has reportedly begun preparations for going public. Industry insiders suggest a potential valuation of around $20 billion.
In a recent interview, CEO Jesse Powell indicated that the company is considering a direct listing, similar to Coinbase, possibly in 2022. He noted that Kraken is in no rush and is closely observing Coinbase’s performance in the public markets before finalizing its own plans.
The platform has experienced substantial growth, with trading volumes hitting new highs in Q1 2021. Additionally, new user registrations grew fourfold since the latter half of 2020.
eToro
In March, the Israeli social trading and multi-asset brokerage company eToro announced its intention to go public via a merger with FinTech Acquisition Corp. V, a special purpose acquisition company (SPAC). The deal values eToro at approximately $10 billion and is expected to close in the third quarter of 2021.
eToro was among the first European platforms to be regulated as a Bitcoin broker back in 2013. It later secured a broker-dealer license in the U.S. in 2020, allowing it to offer commission-free trading to American users. Its main competitor, Robinhood, has also announced plans to go public.
BlockFi
Rumors about a BlockFi initial public offering (IPO) have circulated since mid-2020. The crypto lending service provider posted a job listing for a Chief Financial Officer whose responsibilities would include preparing the company for a potential public offering.
CEO Zac Prince has hinted that an IPO could occur as early as the second half of 2021. Founded in 2017, BlockFi offers crypto-backed loans and high-yield interest accounts. The company recently raised $350 million at a $3 billion valuation.
NFT Investments
NFT Investments made headlines when it announced its intention to go public on the London Stock Exchange’s Aquis Growth Market. The company successfully raised £35 million (around $48 million) in its April listing.
This venture is the first publicly traded firm focused exclusively on non-fungible token (NFT) investments. It was co-founded by Argo Blockchain, another LSE-listed company. Due to overwhelming investor interest, the company revised its target share price upward prior to the listing.
Bakkt
In January, the digital asset platform Bakkt—a subsidiary of Intercontinental Exchange (ICE)—announced plans to go public by merging with VPC Impact Acquisition Holdings, a SPAC. The transaction values Bakkt at approximately $2.1 billion and is expected to close in Q2 2021.
Bakkt offers regulated futures contracts and digital asset trading services. While its performance since launch in 2018 has been below some expectations, a public listing could offer a lucrative exit for early investors.
Bitmain
Bitmain, one of the world’s largest producers of Bitcoin mining hardware, has had a turbulent history with IPO attempts. Earlier internal conflicts between its co-founders had delayed its listing plans.
However, after a public settlement between the founders in January and a subsequent leadership restructuring, the company has revived its ambitions to go public. A simplified business model and improved corporate governance could make an IPO more feasible in the coming years.
Other Potential Candidates
Several other crypto companies are often named as potential candidates for public listings:
- Gemini, the exchange founded by the Winklevoss twins, is frequently the subject of IPO rumors. However, the company has not made any official statements regarding going public.
- Binance, the world’s largest crypto exchange by trading volume, is another often-mentioned candidate. CEO Changpeng Zhao has stated that the company is not currently considering an IPO, citing sufficient internal capital for growth.
- Blockchain.com and Dapper Labs are also among those rumored to be exploring public listings. Dapper Labs, the creator of NBA Top Shot, recently raised $305 million in a funding round that included several high-profile basketball investors.
The continued maturation of the cryptocurrency sector suggests more companies will seek access to public capital markets. For those looking to understand the implications of these market movements, explore more strategies on tracking public crypto companies.
Frequently Asked Questions
What does it mean when a crypto company goes public?
When a cryptocurrency company goes public, it offers its shares to the general public on a stock exchange. This allows outside investors to buy ownership stakes in the company, providing the firm with capital to expand operations and increase legitimacy.
Why are so many crypto companies planning to go public now?
The ongoing bull market, increasing institutional adoption, and greater regulatory clarity have made the public markets more receptive to crypto businesses. A successful listing also provides liquidity for early investors and employees.
How can I invest in a crypto company IPO?
You can invest through a brokerage account that offers access to IPOs or direct listings. Note that some events may have specific eligibility requirements. Always do your own research before investing.
Are all crypto companies going public through traditional IPOs?
No. Many are choosing alternative paths, such as direct listings (like Coinbase) or mergers with SPACs (like eToro and Bakkt). Each method has different implications for investors and the company.
What are the risks of investing in a newly public crypto company?
Volatility, regulatory uncertainty, and market sentiment can greatly affect stock prices. Crypto companies may also face unique operational risks related to cybersecurity and technological changes.
Will more DeFi projects eventually go public?
It's possible. As decentralized finance protocols become more established and regulated, some may pursue token offerings or equity-based fundraising. The landscape is still evolving rapidly.
The trend of crypto companies entering public markets is likely to continue, reflecting the industry’s growth and increasing integration with traditional finance. For those interested in staying updated on the latest market entries, view real-time tools that provide insights into new listings and industry trends.