The number of cryptocurrency-related companies aiming to go public continues to increase, with the latest example being Iris Energy Pty. The firm, focused on green Bitcoin mining, has filed with US regulators for a direct listing on Nasdaq this year.
- Based in Sydney, Australia, Iris Energy is a Bitcoin mining firm that “owns and operates real assets, including data center infrastructure, powered by renewable energy.”
- According to a press release dated August 18th, the company has “confidentially” filed the US Securities and Exchange Commission to make a debut on Nasdaq.
- By submitting a draft Registration Statement on Form F-1 with the Commission, the firm has outlined its plans to have its shares listed on the popular exchange by the fourth quarter of 2021.
- As with all listings, Iris Energy will be “subject to SEC review as and market and other conditions.”
- Interestingly, the company has chosen to go live on Nasdaq through a direct listing instead of the more traditional way of an initial public offering (IPO).
- The direct listing approach – also known as direct placement or direct public offering – eliminates the necessity of intermediaries (underwriters – typically banks). In this case, the firm sells outstanding shares directly to the public.
- With IPO, the intermediary charges a commission for facilitating the process and underwriting the newly-created shares. It’s typically regarded as the safer option.
- Previously, the largest US-based cryptocurrency exchange, Coinbase, also chose to go public on Nasdaq through a direct listing.
- Back in April this year, the firm’s share traded at around $400, and the total valuation exceeded $100 billion.
- Since then, other companies that presented plans to go public included Bakkt, eToro, Kraken, and even Binance hinted at something similar.