Coinbase Backers Register 114.9 Million Shares for Listing

Coinbase Global Inc.’s backers registered for as many as 114.9 million shares to trade in the direct listing of the cryptocurrency exchange, in the latest test of an alternative way to debut in the public markets.

Investment firms including Andreessen Horowitz and Union Square Ventures are among those whose shares could trade, according to a regulatory filing Wednesday. Chief Executive Officer Brian Armstrong and Coinbase co-founder Fred Ehrsam have also registered stock.

Coinbase Backers Register 114.9 Million Shares for Listing

Coinbase shares have changed hands at $200 to $375.01 in private transactions this year, the filing shows. The volume-weighted average price per share for transactions from January through March 15 was $343.58, which would give Coinbase a public market valuation of about $67.6 billion, based on the total number of shares outstanding as of March 15. The fully diluted value -- including employee incentive plans and restricted stock units -- would be significantly higher.

Volumes on private markets are usually lower than major stock exchanges, so the trades aren’t a perfect picture of the shares’ current worth. Ahead of the direct listing, the Nasdaq will set a reference price for investors, which is partly based on private trading activity. These private trades aren’t necessarily indicative of where the stock will actually trade.

The offering will be the first major direct listing to take place on the Nasdaq. All such previous listings were on the New York Stock Exchange, including those by Spotify Technology SA, Slack Technologies Inc., Asana Inc., Palantir Technologies Inc. and Roblox Corp., which listed this month.

Coinbase’s latest financial statements revealed that the company is making money, setting it apart from many other startups when they make their public debuts. Coinbase swung from a loss to a profit of $322 million last year on net revenue that more than doubled to $1.14 billion.

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