Coinbase's successful direct listing on Nasdaq marks a significant milestone for the cryptocurrency industry. With a market cap exceeding $85 billion at its debut, it demonstrates growing mainstream acceptance and investor confidence in crypto enterprises. As the market continues its bullish trend, several other companies are positioning themselves to enter public markets. Here’s an overview of key players likely to pursue listings in the near future.
Kraken: A Major U.S. Exchange Evaluating Public Options
Kraken, another leading U.S.-based cryptocurrency exchange, is actively preparing for a potential public offering. CEO Jesse Powell confirmed that the company is considering a direct listing, similar to Coinbase, possibly in 2022. The exchange reported a fourfold increase in new user registrations and record trading volumes in early 2021.
Powell emphasized that Kraken is monitoring Coinbase’s market performance before finalizing its plans. This cautious approach reflects a strategy to maximize valuation and investor appeal. With an estimated valuation of $20 billion, Kraken aims to leverage its strong market position and growing user base.
eToro: Approaching Public Markets via SPAC Merger
eToro, an Israeli social trading and investment platform, announced plans to go public through 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.
The platform, which began offering Bitcoin brokerage services in 2013, holds regulatory licenses in both Europe and the U.S. Its expansion into commission-free crypto trading positions it as a direct competitor to Robinhood, which has also filed for an IPO. eToro’s existing shareholders are anticipated to retain around 90% ownership post-merger.
BlockFi: Crypto Lending Services Eyeing an IPO
BlockFi, a cryptocurrency lending and savings platform, has been rumored to be considering an IPO since mid-2020. The company’s job postings for a Chief Financial Officer with experience in IPOs and acquisitions further fueled these speculations.
CEO Zac Prince hinted that a public listing could occur as early as late 2021. Founded in 2017, BlockFi allows users to borrow against their crypto holdings and earn interest on deposits. In March 2021, it raised $350 million at a $3 billion valuation, signaling strong investor interest. 👉 Explore more strategies for crypto investment growth
Bakkt: Digital Assets Platform Merging with a SPAC
Bakkt, a digital assets platform focused on derivatives and loyalty rewards, is set to go public via a SPAC merger with VPC Impact Acquisition Holdings. The deal values Bakkt at $2.1 billion and is expected to finalize in Q2 2021.
As a subsidiary of the Intercontinental Exchange (ICE), Bakkt aims to expand its offerings in digital wallets and consumer applications. Despite a slower-than-expected start, the public listing represents a significant opportunity for early investors to realize returns.
Bitmain: Renewed IPO Efforts After Internal Resolution
Bitmain, a major player in Bitcoin mining hardware, has faced a tumultuous journey toward an IPO. Internal conflicts between co-founders previously stalled its plans. However, with a recent settlement and leadership restructuring, the company has renewed its intention to go public.
Co-founder Jihan Wu stated that streamlining operations would make an IPO more feasible. Bitmain’s strong industry presence and technological expertise could attract substantial investor interest once it decides to list.
NFT Investments: First Publicly Listed NFT-Focused Firm
NFT Investments made history by becoming the first NFT-focused investment company to go public. It listed on the Aquis Stock Exchange Growth Market in London, raising £35 million ($48 million). The firm benefited from overwhelming investor interest, leading to an upward revision of its target share price.
Founded with support from Argo Blockchain, a London-listed mining company, NFT Investments focuses on acquiring and managing non-fungible tokens and related assets.
Other Potential Candidates for Public Listings
- Gemini: The Winklevoss twins’ exchange has been subject to IPO rumors, though no official plans have been announced.
- Binance: The world’s largest crypto exchange by volume has sufficient capital and scale to go public, but CEO Changpeng Zhao has stated that an IPO is not currently under consideration.
- Blockchain.com: This crypto services provider has expanded rapidly and may explore public listings in the future.
- Dapper Labs: Known for creating NBA Top Shot, the company recently raised $305 million and has attracted investments from high-profile athletes and celebrities.
Frequently Asked Questions
What does a direct listing mean?
A direct listing allows a company to go public without issuing new shares or hiring underwriters. This method can reduce costs and let existing shareholders sell their stakes directly on the open market.
Why are SPACs popular among crypto companies?
SPAC mergers offer a faster and often less scrutinized path to going public compared to traditional IPOs. This approach is attractive for high-growth sectors like cryptocurrency.
How does going public benefit crypto companies?
Public listings enhance credibility, provide liquidity for early investors, and enable access to capital for expansion and innovation.
Are there risks associated with investing in newly listed crypto firms?
Yes, newly public crypto companies may face regulatory uncertainty, market volatility, and operational challenges typical of emerging industries.
What factors should investors consider before investing?
Investors should evaluate the company’s business model, regulatory compliance, competitive positioning, and long-term vision within the crypto ecosystem.
Will more DeFi projects go public?
While possible, many decentralized finance projects operate under community governance models that may not align with traditional equity offerings. However, some may explore token-based public sales or other hybrid models.
The wave of crypto companies entering public markets signals a new era of institutional adoption and market maturation. As regulatory frameworks evolve and investor appetite grows, more firms are likely to pursue listings, offering broader access to the expanding digital economy.