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Wednesday, April 14: Shares of COIN debuted Wednesday at $381 after the Nasdaq issued a $250 reference price Tuesday. The stock quickly skyrocketed to $429.54. We’ll update this page as new information becomes available.
Tuesday, April 13: The Nasdaq issued a reference price for the expected April 14 Coinbase offering at $250 per share, which would value the company at about $65 billion, CNBC reported. That price is based on private market activity and doesn’t necessarily show where COIN shares will open in the market tomorrow. Recent direct listings have opened well above that price. It’s not yet clear when shares will begin trading.
Monday, April 12: Bitcoin jumped back over $60,000 days before Coinbase’s direct listing, which is scheduled for Wednesday, April 14. Market insiders believe Coinbase’s listing will be a catalyst for a bitcoin and broader cryptocurrency surge.
Friday, April 9: Coinbase this week announced a huge gain in first-quarter revenue, possibly giving a boost to its initial public offering expected April 14. Revenue for the quarter came in at $1.8 billion, more than it earned in all of 2020, according to BusinessWire.
Friday, April 2: Coinbase has announced via Twitter that it expects to launch its offering in a direct listing April 14 on the Nasdaq under the symbol “COIN.”
Friday, March 19: Coinbase plans to delay the public launch of its direct listing until April, reports Bloomberg.
Wednesday, March 17: Coinbase is expected to offer 114.9 million shares in its direct listing, the company said in an amended registration statement filed with the US Securities and Exchange Commission. The direct listing could value Coinbase at more than $100 billion.
Thursday, March 11: Coinbase announced that private trading of its shares last week suggests a $90 billion valuation, up about $13 billion from February when shares were trading around $303 apiece.
It’s official. Coinbase, the largest cryptocurrency exchange in the United States, has publicly filed with the SEC to list on the stock exchange. Once approval for the Coinbase IPO is granted, the listing will be a landmark moment for crypto enthusiasts and could pave the way for other cryptocurrency businesses to go public.
Coinbase stock is not yet available to purchase on any exchange. But it’s expected to go public soon on the NASDAQ. Here’s what we know — and how to buy in when it launches.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
What we know about the Coinbase IPO
Coinbase, a digital currency exchange, submitted a confidential draft registration statement with the US Securities and Exchange Commission indicating its intention to go public via a direct listing. The submission comes on the heels of a rally for bitcoin. Coinbase is a popular platform on which to buy and sale cryptocurrency. The digital currency soared by 300% earlier in February to hit a record US$58,000 for the first time in its history, with a market capitalisation above US$1 trillion.
As per the recent filing, Coinbase, has announced its intention to list on the Nasdaq after filing with the US Securities and Exchange Commission (SEC). It accrued a total revenue of US$1.1 billion in 2020, representing a 100% gain over its associated 2019 total of US$482 million. Previous estimations had Coinbase’s value somewhere close to the US$8 billion mark. However, with the crypto market soaring and a wave of new investors entering this yet nascent space, it’s estimated that the exchange may now go public for more than US$100 billion.
We will update this page as new details emerge.
Will I be able to buy Coinbase stock from Canada?
You can buy shares in the company once it lists on the stock exchange. We don’t yet have a date as to when this might be, but some reports suggest it could be as early as March 2021. Once Coinbase goes public, you’ll need a brokerage account with access to the US stock market in order to invest. So, you’ll need a brokerage that provides access to international stocks.
The process of buying stocks in a US company while living in Canada is the same as buying stocks in a Canadian company. You buy and sell using your online trading account or through an investment broker who handles US stocks.
How to buy Coinbase stock
Once Coinbase goes public, you’ll need a brokerage account to invest. Consider opening a brokerage account today so you’re ready as soon as the stock hits the market.
- Compare share trading platforms.If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Coinbase. Find the stock by name or ticker symbol. Research its history to confirm it’s a solid investment against your financial goals.
- Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Coinbase reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Coinbase, depending on your broker.
- Check in on your investment. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
How do similar companies to Coinbase perform?
It’s impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Coinbase can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Compare online brokerages that provide access to US and Canadian stocks
To buy Coinbase stocks, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit for you at the Coinbase IPO. Take a look at our guide on opening a stock trading account to learn more.
Note: The dollar amounts in the tables below are in Canadian dollars.
A more detailed look at the recent Coinbase IPO filing
In its filing, Coinbase made it clear that it had yet to receive the green light from regulators that will allow it to trade crypto assets that have been deemed as “securities” within the United States’ borders.
It’s pertinent to note that American regulators currently classify Bitcoin as a commodity, however, a number of other premier currencies are yet to be classified as either securities or commodities.
For example, a couple of months back, the SEC filed a lawsuit against Ripple, the firm operating the world’s fourth-largest digital asset by market cap “XRP”, claiming that the company was conducting an unregistered securities offering.
Coinbase is widely considered to be one of the premier cryptocurrency trading ecosystems in the world today, boasting more than 43 million users spread out across 100 different nations. Not only that, the company has many high-profile investors including the likes of Andreessen Horowitz, Union Square Ventures (USV) and Ribbit Capital.
Lastly, a closer look at the crypto giant’s filing shows us that between 2019 and 2020, it was able to rope in a net income of US$322.3 million, swinging from a loss of US$30.4 million just the year prior. Furthermore, the document gives no indication of when the company plans to list its share on Nasdaq or for how much its shares are currently trading for within private markets.
WATCH: Coinbase IPO explained — How to buy shares
Coinbase’s balance sheet
Coinbase is the largest cryptocurrency exchange in the US, with over 43 million verified users and $90 billion in platform assets. Its global network is over 115,000 partners strong and spans 100 countries. Private trading of its shares in March 2021 suggests a $90 billion valuation, up $13 billion from its February valuation.
With the release of Coinbase’s S-1 filing, we were able to take a closer look at the company’s financials.
|As of December 31, 2019||As of December 31, 2020|
|Coinbase revenue||$533.7 million||$1.27 billion|
|Coinbase net income (loss)||($30.3 million)||$127.4 million|
In 2019, Coinbase reported $533.7 million in revenue and a net loss of $30.3 million. In 2020, its revenue rose to $1.27 billion and it reported a profit of $127.4 million.
Rising revenue and falling losses is a promising trend — so long as Coinbase can continue its profit-making trajectory. But no investment is free from risk and the inherent volatility of the crypto sector may prove a determining factor in Coinbase’s profitability.
Tax implications of buying US stocks in Canada
Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.
An exception is made for stock investments held in trust exclusively designed to provide retirement income. Such trusts include RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs are also exempt from US withholding tax if you own US investments in the form of US stocks, bonds or ETFs.
All income from investments, including foreign investments, must be declared as part of your income on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you’ll be double taxed on those earnings — first by the IRS, then by the CRA.
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