Crypto Companies Look To Cash In Via Alternative Listings

Crypto Companies Look To Cash In Via Alternative Listings

Nascent cryptocurrency companies itching to make their public debuts are forgoing traditional IPOs in favor of more lightly regulated alternatives. By Troy Hooper and Rachel Stone Cryptocurrency companies eyeing the stock exchanges are likely to eschew traditional initial public offerings and take alternative paths instead. Since the virtual coins are designed to replicate and replace traditional financial services using digitized ledgers known as blockchains, it is only natural the businesses that are built around them would seek alternative ways to go public and cash out their investors. Coinbase's market debut in April is the biggest public listing yet in the nascent space, setting the stage for other well-capitalized, profitable crypto businesses to consider direct listings, sources told Mergermarket. Other players like Apex Clearing, Bakkt, Cipher Mining and eToro are going public through mergers with special purpose acquisition companies (SPACs). In 2019, Voyager went public through a reverse merger with a shell company. "The direct listing model has appeal to crypto companies because it's a democratized model," said Lisa Ellis, an analyst at MoffettNathanson. "It fits with the ethos of cryptocurrencies of democratization of finance. In a direct listing, there is no roadshow or allocations by investment banks to a privileged