Coinbase stock gave retail investors their best option yet for getting exposure to cryptocurrencies, but make no mistake - more crypto IPOs are coming.
The Coinbase IPO earlier this month will make it easier for other crypto-oriented startups to go public.
And more than a dozen have matured enough to consider making the leap to becoming a publicly traded company. We've made a list of the ones we consider the most likely to go public over the next couple of years.
One wild card is how these companies will go public. Coinbase stock debuted as a direct listing rather than a traditional initial public offering. We know that the Kraken exchange, a Coinbase rival, is considering that same method.
Crypto by its nature is anti-Wall Street, so I'd expect these startups to avoid IPOs in favor of direct listings. Some companies will also take the SPAC (special purpose acquisition company) route. We'll deal with those in a separate story.
The list below is in the approximate order we expect these startups to go public, but much can change for a company on the road to the public markets. Some companies no doubt will be acquired before they even get to the IPO stage.
The top 13 are all U.S.-based startups. I've also included three foreign-based crypto companies that have plans to list on the U.S. markets.
15 Crypto IPOs to Watch
No. 1: Exodus Movement
Founded: 2015
Based in: Nebraska City, Neb.
Est. Valuation: $710 million
The Skinny: Exodus is a crypto wallet that allows users to both store crypto as well as swap it for other cryptocurrencies within the wallet. In a way, Exodus beat Coinbase to the punch in that it's using the SEC's Regulation A+ to offer shares of the company directly to the public through its app. Shares are priced at $27.42 each and can only be purchased with Bitcoin, Ethereum, or the USDC stablecoin. The sale launched April 8 and will continue until $75 million worth of stock has been sold. Shares are expected to start trading on at least one blockchain-based exchange within nine months.
No. 2: Robinhood Markets
Founded: 2013
Based in: Menlo Park, Calif.
Est. Valuation: $40 billion
The Skinny: While Robinhood is primarily a stock-trading app, it has added cryptocurrencies - a portion of its business that is growing very quickly. The company reported earlier this month that 9.1 million customers traded crypto on its platform in Q1 of this year, a huge jump from the 1.7 million crypto traders it had in Q4. That qualifies it for this list. In March, Robinhood privately filed its S-1 with the SEC. A date for the Robinhood IPO has not been set, but is expected this year.
No. 3: Kraken
Founded: 2011
Based in: San Francisco, Calif.
Est. Valuation: $10 billion; seeking a new round of funding that would increase it to $20 billion
The Skinny: Kraken is the world's fourth-largest crypto exchange and has enjoyed explosive growth during 2021's crypto bull market. It added four times as many new users in Q1 of 2021 as it did in all of 2020. Kraken CEO Jesse Powell told CNBC that he is looking at taking his company public in 2022, probably via a direct listing.
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Three tiny digital coins are gearing up for a rally. One trading for around $12 could deliver a 638% profit by the end of 2021.
TODAY'S BEST CRYPTO BUYS
Three tiny digital coins are gearing up for a rally. One trading for around $12 could deliver a 638% profit by the end of 2021.
No. 4: Gemini Trust Co.
Founded: 2014
Based in: New York, N.Y.
Est. Valuation: Unknown
The Skinny: Gemini is a crypto exchange run by the Winklevoss twins, Tyler and Cameron - who gained fame for accusing Facebook Inc. (NYSE: FB) CEO Mark Zuckerberg of stealing their idea for a social network. After winning a large award, the Winklevii started buying Bitcoin. As billionaires, they can easily fund Gemini themselves, so we have no estimated valuation. In January, the twins told Bloomberg they were "definitely considering" taking the company public.
No. 5: BlockFi
Founded: 2017
Based in: Jersey City, N.J.
Est. Valuation: $3 billion
The Skinny: BlockFi was founded as a crypto-based alternative to traditional banks. It pays customers a high interest rate (between 2% and 8%, depending on the crypto asset) for holding their cryptocurrency at the site. It offers loans to customers who must put up crypto as collateral. BlockFi also offers trading services for nine cryptocurrencies. The company is using previous capital raised to expand its global footprint. Last year, CEO Zac Prince said BlockFi could go public as soon as late 2021.
No. 6: NYDIG (New York Digital Investment Group)
Founded: 2017
Based in: New York, N.Y.
Est. Valuation: Undisclosed; has raised $405 million in venture capital, three-fourths of it in 2021
The Skinny: NYDIG provides crypto-based financial services such as investment, brokerage, and custody solutions to institutions, private clients, and banks. The latest funding round of $100 million is to be used to expand into insurance. NYDIG, a subsidiary of Stone Ridge Holdings Group, has backing from such names as Morgan Stanley, New York Life, Liberty Mutual Insurance, and Soros Fund Management.
No. 7: Circle
Founded: 2013
Based in: Boston, Mass.
Est. Valuation: $3 billion
The Skinny: Circle is a global payments platform built on a cryptocurrency foundation. Toward that end, in 2018, it launched the stablecoin USDC in partnership with Coinbase. Circle says its platform has supported more than 100 million transactions worth tens of billions of dollars made by nearly 10 million retail customers and more than 1,000 businesses. This year, it extended its network to include NFTs.
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For every $1,000 you could make with Bitcoin, this special trade could make you as much as $20,040 instead.
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For every $1,000 you could make with Bitcoin, this special trade could make you as much as $20,040 instead.
No. 8: Ripple
Founded: 2012
Based in: San Francisco, Calif.
Est. Valuation: $10 billion
The Skinny: Ripple uses the XRP cryptocurrency network to offer faster, more efficient payments to businesses and financial institutions. In early 2020, Ripple was planning on launching its IPO as early as this year. But after years of delaying action, the SEC finally decided the company's role in creating XRP effectively meant it had sold an unregistered security. The agency filed a lawsuit in December. This has cast a cloud over Ripple and postponed any kind of public listing until the SEC case is resolved. If Ripple wins, however, it is already big enough to go public.
No. 9: Chainalysis
Founded: 2014
Based in: New York, N.Y.
Est. Valuation: $2 billion
The Skinny: Chainalysis is a blockchain tracking and analysis firm that sells its tools and services to government agencies, financial institutions, and cybersecurity companies. It raised $100 million in Series D financing in March, which followed closely on a $100 million of Series C financing in November. In March, the company said both its client base and its recurring revenue had doubled over the previous year.
No. 10: Fireblocks
Founded: 2018
Based in: New York, N.Y.
Est. Valuation: $900 million
The Skinny: Fireblocks provides custodial services for cryptocurrencies to institutional clients. Bank of New York Mellon Corp. (NYSE: BK) invested in the company in a Series C round in March. BNY Mellon is among the largest custody banks in the world. According to The Wall Street Journal, Fireblocks is also working with five other multinational banks.
No. 11: FalconX
Founded: 2018
Based in: San Mateo, Calif.
Est. Valuation: $675 million
The Skinny: FalconX is a crypto trading platform aimed at institutional investors. According to Bloomberg, the company is already profitable and processes about $6 billion worth of trades each month. Investors include Tiger Global Management, B Capital Group, and American Express Co. (NYSE: AXP). FalconX is still in the early rounds of raising capital, so any public listing is at least a couple of years away.
No. 12: BitPay
Founded: 2011
Based in: Atlanta, Ga.
Est. Valuation: $322 million
The Skinny: BitPay focuses on blockchain payment technology for both businesses and individuals. BitPay claims more than 3 million users of its wallet services and nearly 33,000 registered merchants worldwide. Last year, BitPay launched a Mastercard-branded BitPay card that supports the spending of crypto assets. And in December, BitPay filed an application with Office of the Comptroller of the Currency (OCC) to become a U.S. national bank.
TOP CRYPTOS TO BUY NOW
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TOP CRYPTOS TO BUY NOW
Our resident Silicon Valley insider sees three tiny digital coins as today's BEST crypto buys. Get his take on all three now.
Crypto IPOs Based Outside the U.S.
No. 13: MicroBT
Founded: 2016
Based in: Beijing, China
Est. Valuation: Unknown
The Skinny: MicroBT is one of China's leading manufacturers of crypto mining equipment. In January, it announced plans to do an IPO on the Nasdaq exchange in the United States. According to Chinese journalist Wu Blockchain, MicroBT wants to do the IPO to obtain funds to buy the Samsung chips it needs to build its machines. Other Chinese miners, such as Bitmain, have had problems trying to list in the United States, so it remains to be seen if MicroBT will have better luck.
No. 14: Blockchain.com
Founded: 2011
Based in: London, England
Est. Valuation: $5.2 billion
The Skinny: Blockchain.com offers cryptocurrency wallet, custody, credit, and exchange services to both individuals and institutions. The firm has 31 million verified users in 200 countries. Business has more than doubled since Jan. 1, according to company CEO Peter Smith. Blockchain.com has raised more than $500 million in three rounds of venture funding just this year. The most recent was $100 million raised from investment management firm Baillie Gifford. CEO Smith told The Wall Street Journal that Blockchain.com is "carefully considering its public-market options."
No. 15: Bitmain
Founded: 2013
Based in: Beijing, China
Est. Valuation: $15 billion
The Skinny: Bitmain is the world's biggest maker of Bitcoin mining equipment. It has tried and failed twice in the past several years to get a public listing in the United States. A long-running power struggle has delayed another attempt, but in January, CEO Jihan Wu stepped down. As part of the deal that resolved the dispute, Bitmain is planning to do a U.S. IPO before the end of 2022. Stay tuned.
The Digital Gold Rush of the 21st Century
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About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.