Coinbase files for landmark cryptocurrency IPO as Bitcoin soars above $22,000

Coinbase, one of the world’s biggest cryptocurrency exchanges, is set to make financial history next year after announcing plans to float on the stock market.

The California-based company said on Thursday that it had filed confidential paperwork with the Securities and Exchange Commission (SEC), putting it on track to be the first major US cryptocurrency firm to go public.

The filing comes amid a renewed rally for Bitcoin, which on Wednesday broke above $20,000 (£14,734) for the first time thanks to growing interest from major Wall Street investors. By Thursday night, it had exceeded $22,000.

Founded in 2012, Coinbase helped power the rise of cryptocurrencies by letting consumers buy digital tokens with fiat currency through a smartphone app. Last valued at $8bn in 2018, it is now the biggest US-based exchange by trading volume, and has been dubbed the "Dow Jones of cryptocurrencies".

A flotation represents a landmark moment for mainstream acceptance of cryptocurrency, which has slowly moved from an object of suspicion and occasional mockery to an ordinary part of the global financial landscape.

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Coinbase did not say how it plans to structure its float, such as whether it will opt for a traditional public offering or a direct listing. In an interview this May, founder Fred Ehrsam said the company was designed to go public via digital tokens linked in a blockchain, similar to Bitcoin itself.

However, the company recently attracted controversy when its chief executive Brian Armstrong told employees not to debate political issues that were unrelated to Coinbase’s "mission". Critics said that would serve as a pretext to punish minority employees who spoke up against discrimination.

Last month the New York Times reported that around three quarters of the company’s black employees had left between 2018 and 2019, with the majority alleging racist or discriminatory treatment. Coinbase said it had only received three official complaints and had found all to be without merit.