Blockchain.com, a crypto business headquartered in London, is consulting banks for a possible IPO in the U. S. The exchange is considering the move after it attained $14 Billion in March 2022.

What this Could Mean

According to Bloomberg, which first reported the move, the firm’s flotation could happen as soon as before the end of 2022. However, the IPO may be delayed until 2023, and these plans could also change, according to a report described by credible sources. The company’s representative declined to issue any comments on the matter.

Binance’s US branch announced in September last year that it was considering a stock market debut in the next three years.

An IPO is a process through which a publicly listed company sells its shares to the public in new stocks issuance. The process will help Blockchain.com raise funds from the general public or investors.

If the intentions go through, Blockchain.com will be the second cryptocurrency firm in the United States to do so, following main competitor Coinbase’s public offering last year with a valuation of about $100 billion.

For private investors, the transition from a private to a public company can be a critical opportunity to fully enjoy the benefits of their investment. Public investors are also permitted to participate in the offering. This is often a crucial time for private shareholders where they either hold on to or sell part/all of their stocks for gains.

There’s Been Reduced Global IPO Activity

According to EY data, global IPO activity decreased dramatically in the first quarter of 2022 compared to the previous year. There were three hundred twenty-one acquisitions totaling $54.4 billion, down 37 percent and 51 percent from the previous year.

An initial public offering (IPO) is divided into two parts. The first phase involves the pre-marketing of the offering, and the second is the first public offering. When a company decides to go public, it will either solicit private offers from underwriters or make a public announcement to pique the interest of various investors. 

The financiers (underwriters) who will lead the IPO process are chosen by the firm. One or more financiers may be chosen by a company to collaborate on various areas of the IPO process. The underwriters are in charge of every aspect of the initial public offering, including rigorous research, documentation, filing, marketing, and issuance.

IPO Could Increase Capital and Transparency

Blockchain.com could raise more capital easily by inviting the public to invest. This will promote easier acquisition deals, the company’s exposure, public image, and stature as sales and profits increase.

The enhanced transparency of public companies’ regular reporting may improve a company’s credit terms compared to a private company. However, the company may incur more legal, accounting, and marketing costs.

Blockchain.com processes one-third of all bitcoin network transactions and claims to have 37 million verified users, as per the company’s website. Antony Jenkins, the former CEO of Barclays, is on the board of Blockchain.com, which Peter Smith leads.