Crypto Venture

Coinbase Initiates $50 Million Secondary Market Sale Of Company Stock

Update: Crunchbase News originally reported that Coinbase was raising a Series F round due to the legal entity named in a filing from a firm participating in the offering. We spoke with a spokesperson from Coinbase, who was able to give us more information about the deal, which is an authorized secondary-market transaction of shares from existing shareholders.

On Friday, cryptocurrency exchange and wallet platform Coinbase filed paperwork with the Securities and Exchange Commission indicating it’s raising $50 million in an equity offering.

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The filing indicates that Coinbase has already closed $21.3 million from 20 investors, leaving roughly $28.7 million left to raise in the round of funding. The filing indicates this is a new campaign from the crypto company; the date of first sale was December 7th. The filing was signed and dated today, December 21st.

A Coinbase spokesperson that this is a secondary market transaction. The spokesperson said that, “periodically, Coinbase offers its employees the opportunity to sell their equity back to the company in return for cash. The company recently initiated such an initiative.”

The spokesperson said the $50 million secondary market transaction disclosed in the filings was authorized in conjunction with its Series E capital raise. Coinbase raised a huge $300 million Series E deal led by Tiger Global Management, which earned the company a post-money valuation of $8 billion in October. Coinbase’s total known venture backing is over $525 million.

Based on the legal entity name in Form D filing from True Capital Management, a wealth management firm based in San Francisco, originally made the deal look like it was a new series of venture funding.1 However, the previously-quoted Coinbase spokesperson reiterated the company has not issued Series F shares. Crunchbase News learned that the name of the special purpose vehicle which purchased Coinbase shares was unrelated to the series of shares being transacted in the deal.

Illustration: Li-Anne Dias

  1. The filing was for a legal entity which appears to be a special purpose vehicle (SPV) called “True Capital Partners II, LLC – Series F – Coinbase.”


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