Hi, how long have you not actively thought of Coinbase ? Do you still have an impression of Robinhood, the favorite of American retail investors? Do you know about Hive Blockchain and Hut 8 Mining?
And they all have something in common: this year, the successful listing on NASDAQ is closely related to the encryption business.
This year is undoubtedly a hot year for crypto business affiliates, group formations and Baotuan listings. From the end of last year to the first half of this year, the market of “institutional bulls” and “KOL shouting single bulls” has driven the encryption industry to enter the public eye faster, and has also given encryption companies an opportunity to accelerate their listing.
According to incomplete statistics, as of the beginning of September this year, through various methods (IPO, direct listing, SPAC, mergers and acquisitions), there are 20+ companies that have been or plan to be listed on the Nasdaq and are related to the encryption business. (“Association” refers to: the original blockchain business and the transformation and development of the blockchain business).
Among them, the most out of the circle was that on April 14 this year, Coinbase , the largest cryptocurrency compliance exchange in the United States , was successfully listed on the Nasdaq.
Coinbase goes public: the verification of equity investment in the cryptocurrency market
As the world’s first cryptocurrency exchange listed on NASDAQ, Coinbase’s success has a milestone significance. At that time, Coinbase also occupied the front page headlines of major financial reports with an absolute advantage. Various prospectus apocalypses and tweets from the founder’s inspirational history dominate the circle of friends and drive the carnival of the whole industry. People in the circle can’t help but have a sense of “collective honor of being justified”, and Bitcoin is also At that time, was pushed to the top…
According to data from the application analysis company Apptopia, in the first week after Coinbase went public, all of its APP applications broke the record of single-day downloads and daily active users.
The listing of Coinbase shows that equity investment is feasible in the cryptocurrency market, and not all startups must raise funds by issuing tokens.
However, the stock price trend of Coinbase after its listing has cooled the frenzied market sentiment. On the first day of listing on NASDAQ (stock code: COIN), Coinbase had an opening price of US$381 and a closing price of approximately US$328. Although the reference price set by the Nasdaq market before the opening was increased by more than 31% (reference price of US$250 per share), and rose to a maximum of US$345 two days later, the good times did not last long, as the Coinbase CEO and the company related After the news of investors dumping their holdings worth about US$4 billion on the first day of listing was released, this eagerness to release digital wealth caused Coinbase’s stock price to drop to a minimum of about US$282 in a week or so. Judging from the chart, Coinbase’s stock price was basically in a “lying flat” state from May to August, and there was no major rise or fall. Since mid-to-late August, there has been a rise and improvement.
(Image source: Nasdaq official website)
Although the stock price is a bit unsatisfactory compared to investors’ previous high expectations, the Coinbase listing event itself has added icing on the cake for the development of its business. According to its first post-IPO financial report released on May 14th, Coinbase’s total revenue in the first quarter was US$1.8 billion, an increase of approximately 8 times year-on-year; its net profit in the first quarter was US$771.5 million, a surge of 23 times year-on-year; The number of monthly trading users increased to 6.1 million, which is double that of the fourth quarter of 2020; there are currently more than 56 million verified users, including 8,000 institutions and more than 134,000 ecosystem partners…
The stock price is not amazing, but the data is amazing. The profit of business development is better than the return of the stock market, you know. And this sentence, applied to Robinhood, is very suitable but runs counter to it.
Robinhood goes public: the crypto transformation of traditional investment, unacceptable or related to the right time and place
For stock investors, Robinhood is no stranger to the US Internet celebrity broker “Robin Hood.” This traditional financial market, a leader in the field of stock investment, since the announcement of the Nasdaq IPO in early March of this year, its external publicity has begun to focus on expanding the encryption business: the appointment of the chief operating officer and CEO of the encryption business propaganda We must go all out to develop the encryption business and continue to add new products and functions…
The adjustment of Robinhood’s business strategy reflects that American investors are shifting from the stock market to the cryptocurrency market in large numbers, and if they want to retain customers and consolidate their performance, they must achieve transformation and self-help.
According to the prospectus submitted by Robinhood, it intends to raise up to 100 million U.S. dollars, and cryptocurrency-related income has increased significantly. In the first three months of 2021, 17% of its total revenue comes from cryptocurrency transactions, with a total transaction volume of 88 billion U.S. dollars, an increase of 23 times compared with the same period last year…This also shows that this wave of cryptocurrency bull market Robinhood has tasted the sweetness of the ride, which can also explain why its team’s business strategy transformation is inclined to cryptocurrency.
However, despite many efforts and attempts, Robinhood went public, but it did not cause too many waves in the crypto circle. Compared with the carnival when Coinbase went public, Robinhood, a non-“blockchain native” trading platform, does not seem to have received more recognition. For the cryptocurrency group, Robinhood finally went public with a mediocre price, and then ended with a mediocre break…
Robinhood fell 8.4% (stock code: HOOD) on the first trading day of its NASDAQ listing, which was lower than the opening price of $38 per share. At the close of the day, the stock price was less than $35. According to Bloomberg data, among 51 American companies that raised the same funds as Robinhood, its first-day trading performance was the worst. Robin Hood, it seems a bit “unacceptable”…
Compared with the popularity of Coinbase when it went public, there are many reasons to explain Robinhood’s results, such as the right time and place.
Coinbase’s listing stall is in the bull market, and market investors are very greedy. With the 519 avalanche market caught off guard, it crushed many people’s dreams of getting rich, and then the market continued to decline and seemed to fall apart, making the market bearish sentiment enveloped. And Robinhood, which faced penalties and investigations due to regulatory issues, finally chose to go public at the end of July. It seems to have missed the glorious period that it should have been… Judging from the trend of HOOD’s K-line, it has had a sudden “struggle”, but Most of the time, the price trend is stable and there are not too many waves.
(Image source: Nasdaq official website)
Speaking of the right time and place and the impact on listed companies, I have to mention Hive Blockchain, Hut 8 Mining and other cryptocurrency mining companies that have been listed on the Nasdaq this year.
Hive Blockchain goes public: Driven by market changes, crazy output is a reasonable operation
Mining is one of the powerful tools for making money in the bull market. Taking a ride in the market, this year has already gotten together with the mining-related crypto companies that are planning to be listed on the Nasdaq.
Take Hive Blockchain as an example. This is a Canadian listed mining company. It was approved by Nasdaq stock in mid-June. It was listed and traded on the Nasdaq in the form of common stock, but it still remains listed on the Toronto Stock Exchange. .
After being listed on the Nasdaq, Hive Blockchain did these things: buying mining machines, evacuating Quebec, Canada, buying mining machines, continuing to buy mining machines… “Buy, buy, buy” seems to have become the “personal design of Hive Blockchain”. “.
The following is the “crazy output” timeline after the listing of Hive Blockchain:
- On July 12th, Hive Blockchain purchased 3,019 Bitcoin mining machines, which increased its computing power by 46%. Hive Blockchain said that the newly purchased mining machine will bring about US$80,000 in additional daily income to the company, and it has been deployed to a mine in Quebec, Canada.
- On July 13th, Hive Blockchain plans to withdraw from Quebec, Canada due to tightening energy regulations. Hive Blockchain acquired a mining business in Quebec, Canada in May last year. However, it has built a new mining facility in Sweden and is currently mining in Sweden. The scale of the mine has surpassed Quebec.
- On August 3, Canaan Technology stated that it will deliver 4,000 mining machines to the listed mining company Hive Blockchain.
- On August 13th, Hive Blockchain ordered 1,800 S19j Pro ant mining machines from Bitmain.
(Reference source: Chain News)
This wave of crazy output of Hive Blockchain is actually a reflection of a very interesting market environment. In Q3 of this year, the encryption mining industry is facing severe regulatory crackdowns due to the current energy situation. In some countries and regions, it has been hit hard, such as the domestic “ban on mining.” This has an important impact on the development of mining companies that are forced to rescue themselves and their own overseas mining companies.
Although the general environment must be followed, but under the risk, it also creates opportunities for gaps outside the general environment. The mining and custody policy is beneficial to companies that mine overseas and have a stable policy and custody environment. In this way, the crazy operation of Hive Blockchain becomes reasonable.
The crypto business-related companies listed on NASDAQ this year, although their share prices are different, flat, struggling, and stable, with different styles, they are all “carriers” of the market environment this year. The author concludes The following enlightenment:
- Equity investment is becoming a trend in the crypto market. In the future, many start-up companies will have the opportunity to become blue chip stocks.
- Traditional finance is rapidly converging or transforming with encrypted finance. The prospect of crypto finance is promising, and it is gradually moving towards the mainstream trading market, becoming the choice of more investors and being recognized by more mainstream financial industries.
- The market performance of crypto-related companies after listing is closely related to market conditions, policy supervision, and investor sentiment. It is important to take the opportunity to set sail and seize the best time to go public. Regulatory compliance is the top priority to be considered.
- The trend of stock prices is not completely positively correlated with the business development of listed companies. If investors judge the potential and future of listed companies from the stock price alone, it seems that the pattern has not opened up. It seems more practical to find outstanding players on the key track to evaluate the value from a long-term perspective.
And 2021 has entered the stage of Q3. With more than three months left, what other listed companies are worthy of investors’ attention?
The author adopts the standard keyword input principle and searches the domestic blockchain head media for several evaluation indicators such as “encryption”, “listing”, “regulation”, and “appointment”. From the original blockchain business, compliance, team After precise search in several aspects, the following targets were found, which are for reference only and do not constitute investment advice!
Apifiny: A “slam” player with a fusion of standards
Searching for the keywords of “encryption”, “listing”, and “appointment”, only Apifiny, an American company, seems to be doing more “ecological” business, and doing transactions, market making, and mining. The mining hashrate coins are involved in popular areas. At present, most of the information sources found are from the world-renowned blockchain media Coindesk. The author checked the original link, which is highly credible.
(Image source: Golden Finance)
Apifiny plans to go public by the end of the year, but the specific method of listing is currently unknown. Judging from the news report and official website verification, its current major moves are focused on team upgrades and new product launches. On the team side, senior executives from Goldman Sachs, BlackRock, Marvel, and JD Cloud have joined, and even the CFO has also been exchanged to help with the listing, which shows that the determination to go public is great. On the product side, there is a HEX VIP Early Access Program on the homepage of the official website, which will provide eligible traders with free order book transactions for life. At present, there is no more publicity or specific explanation for this product. Looking at the introduction, it is likely to be in the form of CEX+DEX.
(Image source: Apifiny official website)
It is worth noting that Apifiny also obtained a broker-dealer license from the U.S. Financial Industry Regulatory Agency in April this year, the month Coinbase went public. According to media reports, it has entered the ranks of compliant exchanges such as Coinbase, Gemini, eToro, and Circle. It remains to be seen whether it can spark a wave of Coinbase listing.
(Image source: Odaily Planet Daily)
eToro: Listed in SPAC mode, hot this year
In the above report that Apifiny obtained the US FINRA brokerage trading license, the eToro mentioned is also a hot target that is planned to be listed in the second half of this year.
eToro is a multi-asset trading platform established in Israel in 2007. The company took the lead in launching an “imitation” trading system that allows amateur stock investors to replicate the trading strategies of successful investors on the platform. It launched crypto and social trading in the United States in 2019. According to The Block report, eToro will achieve significant growth in 2020, with more than 5 million new registered users and total revenue of US$605 million, a year-on-year increase of 147%. eToro currently has more than 20 million registered users.
(Image source: eToro official website)
It is reported that the company is in the process of merging with a special purpose acquisition company (SPAC) FinTech Acquisition Corp.V., which is scheduled to be completed in the third quarter of 2021. The combined company will operate as eToro Group Ltd. and will be listed on the Nasdaq. Listing by way of SPAC will enable eToro to obtain a valuation of approximately US$10.4 billion.
Here, under the popularization of SPAC, it is not difficult to find that many companies related to encryption business have already used or plan to use this path to achieve the purpose of listing.
SPAC is the abbreviation of Special Purpose Acquisition Company, and the purpose of its initiation is to acquire private companies after establishment in order to achieve the rapid listing of private companies.
(Image source: Google)
The advantages of SPAC are short cycle, low cost, high certainty, simple process, and relatively stable price after listing. According to data, the establishment of a SPAC entity requires only US$25,000, and it only takes 3-4 weeks to set up a shell SPAC, and then the SEC review can be completed in about 1 month, and it can be listed in 15 days, and after the listing , You can look for potential acquisition companies.
Compared with IPOs, direct listings and mergers and acquisitions, SPACs have a faster process and can also raise funds, making them a popular way of listing. According to the data website SPACinsider, there have been 423 SPAC IPOs this year, which is nearly double the 248 in 2020 and only 59 in 2019.
(Image source: SPACinsider)
Argo Blockchain: Representative of the “addiction” of crypto mining companies listed
In addition to the above-mentioned two blockchain-based, transaction-based listing targets, mining-based target companies are also worthy of attention.
The development of mining companies this year is closely related to changes in regulatory policies due to energy consumption. Mining companies have always been one of the most active track representatives for crypto listings and are keen on “global” listings.
As mentioned above, Hive Blockchain is a Canadian listed mining company and listed on the Nasdaq for the second time, while Argo Blockchain is a British listed mining company that has submitted a US$75 million IPO application to the SEC on August 20. It is also planned to be listed on the Nasdaq for a second time. It is reported that it has been approved to issue ADS (American Depositary Shares) on the Nasdaq Global Market under the stock code [ARBK]. However, specific details such as the price range and the number of shares to be issued have not yet been determined.
(Image source: Argo official website)
Although there are still more than three months left in 2021, there is still a lot of room for imagination in the listing of crypto-related companies, and there will even be a wave of intensive enthusiasm at the end of the year. But there is no doubt that the volatility of the market will directly affect the strategy of these companies to go public. Whether it is torrential or waiting for the wind, encryption companies are using their own power and energy to influence the pattern of the financial market. This is the best era.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/lying-flat-struggling-seeking-progress-in-stability-how-are-the-companies-listed-on-nasdaq-this-year/
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