Coinbase Goes Public: Where Is the Endgame for Crypto Firms?

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The long-anticipated public listing of Coinbase has officially entered the next phase. On February 25, 2025, the U.S.-based cryptocurrency exchange filed its S-1 registration statement with the Securities and Exchange Commission (SEC), paving the way for a direct listing on the Nasdaq under the ticker symbol COIN. As the largest regulated crypto platform in the United States, Coinbase’s move marks a watershed moment—not just for the company, but for the entire digital asset ecosystem.

With over $3.4 billion in cumulative revenue since its 2012 inception and a net income of $322.3 million in 2020 alone, Coinbase is no longer just a crypto startup. It's a financial infrastructure player with 43 million retail users, 7,000 institutional clients, and more than $90 billion in assets held on its platform. Its implied valuation—hovering around **$100.3 billion** based on secondary market pricing—places it among established Fortune 500 companies.

But what does this mean for investors, crypto enthusiasts, and traditional finance? And what lies ahead for other exchanges eyeing public markets?

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Financial Performance: A Breakdown of Growth

Coinbase’s financial health reflects the broader adoption of digital assets. In 2020, the platform reported $1.277 billion in revenue**, a 140% increase from the previous year. Net profit surged to **$322.3 million, up nearly 960% from $30.38 million in 2019.

This explosive growth was driven by rising user engagement and trading volume:

Over 96% of Coinbase’s income comes from transaction fees, primarily denominated in fiat currency rather than stablecoins like USDT. Interestingly, 7.4% of fees are collected in crypto, which the company promptly converts to USD when thresholds are met—$100 daily or $5,000 in aggregate—to mitigate volatility risk.

Beyond fee income, Coinbase holds a strategic portfolio of digital assets:

These holdings represent an investment cost of $62.3 million, meaning Coinbase has achieved a remarkable 201% return on its crypto investments—a testament to both timing and conviction.

"We’ve always believed in the long-term potential of crypto economies," said Brett Tejpaul, Coinbase’s institutional lead. "Our balance sheet reflects that commitment."

Institutional Adoption: The Shift from Retail to Big Money

One of the most significant trends revealed in the S-1 filing is the growing dominance of institutional investors. From just over 1,000 institutional accounts in 2017, that number has ballooned to 7,000 by the end of 2020.

As a result, the composition of trading activity has shifted dramatically:

This shift isn’t just statistical—it signals a maturation of the market. Institutions bring stability, larger capital pools, and longer investment horizons. According to Coinbase, institutional trading is less sensitive to short-term price swings, reducing overall market correlation with Bitcoin volatility.

While the company hasn’t named specific clients, insiders suggest major players like Tesla and MicroStrategy used Coinbase to execute large-scale Bitcoin purchases—including Tesla’s $1.5 billion BTC buy-in during early February.

Core Keywords and Market Implications

The Coinbase listing isn’t just about one company going public—it’s about legitimizing an entire industry. Key themes emerging include:

These keywords reflect growing investor interest in secure, compliant gateways to the crypto economy.

Coinbase’s DPO approach is particularly noteworthy. Unlike a traditional IPO, a direct listing doesn’t raise new capital but allows existing shareholders—employees, early investors—to sell shares immediately without lock-up periods. This provides liquidity while avoiding dilution.

However, it also introduces risks:

“Existing shareholders may sell shares shortly after listing, potentially creating oversupply and downward pressure on stock price.”

Founders and major stakeholders—including CEO Brian Armstrong (20.7%), a16z (15.4%), USV (7.2%), and Ribbit Capital (6.2%)—now have a clear path to liquidity.

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Risks and Competitive Challenges

Despite its success, Coinbase faces significant headwinds:

Regulatory Constraints

Due to strict U.S. compliance requirements:

Intensifying Competition

The S-1 explicitly names Binance as a competitor—one with fewer regulatory constraints and broader product offerings across derivatives, staking, and decentralized finance (DeFi).

Coinbase warns:

“We compete with unregulated or lightly regulated firms that may have greater resources… DeFi platforms also pose a growing threat.”

The rise of non-custodial wallets and decentralized exchanges could erode Coinbase’s transaction-based revenue model over time.

Why This Listing Matters Beyond Coinbase

For Traditional Finance: A New Asset Class Enters Mainstream

Coinbase represents the first pure-play crypto exchange listed on a major U.S. exchange. Unlike mining stocks or indirect exposure via Grayscale trusts, owning COIN stock means betting on the growth of crypto trading itself.

This opens doors for pension funds, ETFs, and conservative investors who previously had no compliant way to gain exposure.

For the Crypto Ecosystem: Validation and Momentum

After years of skepticism, a regulated exchange backed by top-tier VCs (Andreessen Horowitz, Tiger Global) entering public markets sends a powerful signal: crypto is here to stay.

Moreover, Coinbase’s journey—from securing state-by-state licenses to building audit-ready financial systems—offers a blueprint for other compliant platforms like Kraken and Gemini, both seen as potential future public candidates.

Who’s Next in Line?

While many exchanges dream of going public, few meet U.S. regulatory standards.

Binance, despite its global dominance, operates Binance US as a separate entity with limited scale—and CEO CZ has stated they’re not pursuing an IPO.

Huobi and OKX already have ties to Hong Kong-listed entities and have issued platform tokens (HT, OKB), complicating U.S. approval.

Bithumb has faced repeated setbacks in its U.S. listing attempts due to regulatory scrutiny in South Korea.

That leaves Kraken and Gemini as the most likely successors—both U.S.-based, fully licensed, and free of native token conflicts.

Frequently Asked Questions

Q: What is a direct public offering (DPO)?
A: A DPO allows existing shareholders to sell shares directly on a public exchange without raising new capital or using underwriters—unlike an IPO.

Q: How does Coinbase make money?
A: Primarily through transaction fees (over 96%), with minor revenue from subscriptions and other services.

Q: Is Coinbase safe for storing crypto?
A: Yes—most assets are held offline in cold storage, and the platform complies with stringent U.S. regulatory standards.

Q: Can international investors buy COIN stock?
A: Yes, once listed on Nasdaq, COIN will be available globally through standard brokerage accounts.

Q: Why didn’t Coinbase issue a native token like BNB or FTT?
A: To maintain regulatory compliance and avoid additional scrutiny from the SEC—a strategic choice for public listing readiness.

Q: Will Coinbase add more cryptocurrencies?
A: Yes—the S-1 notes ongoing expansion of supported assets, though any addition must pass legal and compliance reviews.

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Final Thoughts

Coinbase’s public debut isn’t just a corporate milestone—it’s a cultural turning point. It proves that a crypto-native business can scale responsibly, comply with regulations, and deliver real value to users and investors alike.

As institutions deepen their involvement and retail access expands, the line between traditional finance and digital assets continues to blur. The question isn’t if more crypto firms will go public—but when, and how fast they can follow Coinbase’s lead.

One thing is certain: the era of crypto legitimacy has officially begun.