Cryptocurrency exchange Coinbase, following the example of Spotify (NYSE:SPOT), Slack (NYSE:WORK) and Palantir (NYSE:PLTR), has decided to go public bypassing the IPO procedure through a direct listing, CNBC reports.
This means that the exchange will not issue additional shares; only securities that current shareholders want to sell will end up on the stock market.
Founded in 2012, Coinbase has grown to become the largest digital currency exchange in the United States and is going public amid renewed investor interest in cryptocurrencies. The most popular digital asset, Bitcoin, has grown over the past year by more than 260% and is trading today at $36,251.
Coinbase opted for a direct listing procedure to avoid dilution of shares, CNBC notes.
Spotify became the first major tech company to take this route in 2018. Slack, Palantir and Asana Inc (NYSE:ASAN) have since followed, with gaming company Roblox (NYSE:RBLX) eyeing a direct listing next month.
Coinbase announced its initial intention to go public in mid-December.