This article is original by PUNK Finance and Economics, author Baihui, please indicate the source for reprinting.
Hey, how long have you not taken the initiative to rememberCoinbaseup? Do you still have an impression of Robinhood, the favorite of American retail investors? Cryptocurrency mining companies Hive Blockchain, Hut 8 Mining, do you know?
And they all have something in common: this year, they were successfully listed on Nasdaq, which is closely related to the encryption business.
This year is undoubtedly a hot year for crypto business affiliates to form groups and group listings. From the end of last year to the first half of this year, the market of "institutional bulls" and "KOL shouting single bulls" drove the encryption industry to enter the public's field of vision faster, and also gave encryption companies an opportunity to accelerate 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 more than 20 companies that have been or plan to be listed on Nasdaq and are related to the encryption business. ("Association" refers to: blockchain native business and transformation and development of blockchain business).
Among them, the most out of the circle is April 14 this year, the largest cryptocurrency compliance exchange in the United StatesCoinbase, successfully listed on NASDAQ.
Coinbase listing: the verification of equity investment in the cryptocurrency market
bitcoinbitcoin, also at that time, was pushed to the top...
According to data from app analysis company Apptopia, in the first week after Coinbase went public, all of its apps broke the records 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 start-ups must issue tokens to raise funds.
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(Image source: Nasdaq official website)
Although the stock price is somewhat unsatisfactory compared with investors' previous high expectations, the Coinbase listing event itself is the icing on the cake for its business development. According to its first post-listing financial report released on May 14, Coinbase’s total revenue in the first quarter was US$1.8 billion, an increase of about 8 times year-on-year; the net profit in the first quarter was US$771.5 million, a surge of 23 times year-on-year; Monthly trading users have grown to 6.1 million, doubling from 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 from business development is better than the stock market, you know. And this sentence, applied to Robinhood, is very suitable but runs counter to it.
Robinhood IPO: Encryption transformation of traditional investment, unaccustomed or related to the right time, place and people
For stock investors, Robinhood is no stranger - the American online celebrity brokerage "Robinhood". This traditional financial market—the leader in the field of stock investment, since the release of the news of its IPO on Nasdaq in early March 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 Going all out to grow the crypto business, keep adding new products and features...
Robinhood's business strategy adjustment 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 performance, they must realize transformation and self-help.
According to the prospectus submitted by Robinhood, it plans to raise up to 100 million US dollars, and the income related to cryptocurrency has increased significantly. In the first three months of 2021, 17% of its total revenue came from cryptocurrency transactions, with a total transaction volume of 88 billion US dollars, an increase of 23 times compared to the same period last year... This also shows from the side that with 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 leaning towards cryptocurrencies.
However, despite many efforts and attempts, the listing of Robinhood has not caused too many waves in the encryption circle. Compared with the carnival when Coinbase went public, Robinhood, a non-blockchain-native trading platform, does not seem to have received more affirmation. For the atmosphere group in the encryption circle, Robinhood finally went public with a mediocre listing, and then ended with a mediocre break...
Robinhood fell 8.4% (ticker: HOOD) in its debut trading day on Nasdaq, below its opening price of $38 per share, before closing the day below $35. Of the 51 U.S. companies that raised the same amount of money as Robinhood, it had the worst first day of trading, according to Bloomberg data. Robin Hood, it seems a little "acclimatized"...
Compared with the popularity of Coinbase when it was listed, there are many reasons that can explain the reasons for this result of Robinhood, such as: the right time and place.
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(Image source: Nasdaq official website)
When it comes to 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 Nasdaq this year.
Listing of Hive Blockchain: Driven by market changes, crazy output is actually a reasonable operation
Mining is one of the sharp tools for making money in the bull market. Riding the wind of the market, this year, it has frantically gathered together with mining-related encryption companies that plan to list on Nasdaq.
Take Hive Blockchain as an example. This is a listed mining company in Canada. It was approved by Nasdaq in mid-June. It is listed on Nasdaq in the form of common stock, but it still retains its listing on the Toronto Stock Exchange. .
After being listed on Nasdaq, Hive Blockchain did the following things: buy mining machines, evacuate Quebec, Canada, buy mining machines, continue 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 Hive Blockchain went public:
bitcoinbitcoinMining machine, computing power increased by 46%. Hive Blockchain stated that the newly purchased mining machines will bring the company an additional daily income of approximately US$80,000, and are currently deployed to the mine in Quebec, Canada.
News on July 13, Hive Blockchain plans to withdraw from Quebec, Canada due to tightening energy regulation. The scale of the mine has surpassed that of Quebec.
According to the news on August 3, Canaan Technology stated that it will deliver 4,000 mining machines to the listed mining company Hive Blockchain.
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(Reference source: Lianwen)
This wave of crazy output of Hive Blockchain is actually a reflection of a very interesting market environment. In Q3 of this year, the crypto mining industry faced severe regulatory crackdowns due to the current energy situation. In some countries and regions, it was hit hard, such as the domestic "mining ban". This has an important impact on the development of mining companies that are forced to rescue themselves and overseas mining companies themselves.
Although the general environment must be followed, the risks also create opportunities for gaps outside the general environment. The policy of banning mining and hosting is beneficial to companies that mine overseas and have a stable policy and hosting environment. In this way, the crazy operation of Hive Blockchain becomes reasonable.
The companies related to the encryption business listed on NASDAQ this year, although their stock prices are different, flat, struggling, steady progress, and different styles, but they are all "carriers" of this year's market environment. The author concludes Here are a few hints:
Equity investment, in the encryption market, is becoming a trend. In the future, many start-up companies will have the opportunity to become blue-chip stocks.
Traditional finance is rapidly integrating or transforming with encrypted finance. The prospect of encrypted finance is promising, and it is gradually moving towards the mainstream trading market, becoming the choice of more investors and recognized by more mainstream financial industries.
The market performance of companies related to encryption business after listing is closely related to market conditions, policy regulation, and investor sentiment. It is very important to take advantage of the opportunity to set sail and seize the best time to go public. Regulatory compliance is a top priority to consider.
The trend of stock price is not completely positively correlated with the business development of listed companies. If investors judge the potential and future of listed companies solely from the stock price, it seems that the pattern has not been opened. It seems more practical to find excellent players on key tracks and evaluate their value from a long-term perspective.
And 2021 has entered the stage of Q3. In the remaining three months, which other companies to be listed are worthy of investors' attention?
The author adopts the principle of standard keyword input, and searches several evaluation index words such as "encryption", "listing", "supervision" and "appointment" in the domestic blockchain head media, from the original business of the blockchain, compliance, team After precise search in several aspects, the following bids were found, which are for reference only and do not constitute investment advice!
Apifiny: A "Grand Slam" player integrating all standards
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(Source: Golden Finance)
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(Image source: Apifiny official website)
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(Image source: Odaily)
eToro: SPAC way to go public, this year's hottest
In the above-mentioned report that Apifiny obtained the US FINRA brokerage trading license, the eToro mentioned is also a popular target that is clearly planned to be listed in the second half of this year.
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(Image source: eToro official website)
It is reported that the company is 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 be listed on NASDAQ. Going public as a SPAC would give eToro a valuation of about $10.4 billion.
It is not difficult to find out that many companies related to the encryption business have already used or plan to use this route to achieve the purpose of listing.
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(Image source: Google)
The advantages of SPAC are short cycle, low cost, high certainty, simple process, and relatively stable price after listing. According to the data, the establishment of a SPAC entity only needs 25,000 US dollars, and it only takes 3-4 weeks to establish a shell SPAC, and then it can complete the SEC review in about 1 month, and it can be listed after 15 days. , you can look for potential acquisition companies.
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(Image source: SPACinsider)
Argo Blockchain: a representative of the "addiction" of crypto mining companies going public
In addition to the above two blockchain-native and trading-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 representatives of crypto listings, and are keen on "global" listings.
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(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 for the listing of companies related to encryption business, and there will even be a wave of intensive upsurge at the end of the year. But there is no doubt that market fluctuations will directly affect the listing strategies of these companies. Whether it is rushing forward or waiting for the wind to come, encryption companies are using their own strength and energy to influence the structure of the financial market. This is the best era.
