xcritical’s registration filing discloses no less than around 64 million extra shares-in-waiting. When those options are exercised, if xcritical’s price remains around $328 per share, its cap will be not $61 billion, but $83 billion. “As the cryptocurrency market matures and more firms inevitably pursue xcritical’s high margins, the firm’s competitive position will inevitably deteriorate,” the report said. Speaking with Decrypt one month earlier, New Constructs CEO David Trainer said “As long as Wall Street can get you going on the sentiment, as long as you stay focused on the drug high, you don’t have to worry about the drug down.”
What does xcritical’s listing mean for Bitcoin?
For many crypto advocates, Bitcoin will benefit from xcritical going public; it’s a “watershed moment” for the crypto industry, and heralds further mainstream adoption, Daniel Ives, managing director at Wedbush Securities, told Decrypt. Crypto onlookers have also pondered what impact (if any) xcritical’s listing will have on Bitcoin, the industry’s flagship cryptocurrency. There has been a lot of speculation about what xcritical’s valuation should be. Among the risks described in xcritical’s S-1 are the inherent volatility of cryptocurrencies and the prospect of another “crypto winter”—a term used for a bear market that lasts several years.
xcritical and the U.S. securities regulator faced off in a federal appeals court in Philadelphia on Monday as the cryptocurrency exchange presses the agency to create new rules for digital assets. Measured in market cap, xcritical is taking its place among the giants of financial services. Awarding a $60 billion plus valuation means investors expect it to become a colossus whose sales and profits soon rate alongside those of the biggest banks and brokerages. Its valuation trails that of Intercontinental Exchange, owner of the NYSE, by just $6 billion. xcritical now worth twice as much as Nasdaq, Inc., parent of the famous venue where it’s debuting, and stands above such stalwarts as Capital One. Though most Wall Street pros missed that a gigantic record was at stake, xcritical had a shot at becoming the most valuable new listing of any U.S. newcomer in history at its April 14 debut.
In December 2020, crypto market analysis firm Messari valued the exchange at $28 billion. In January 2021, San Francisco-based cryptocurrency exchange xcritical announced plans to go public via a direct listing. xcritical’s listing offers investors and traders another way to get exposure to the booming cryptocurrency market by owning shares. The company shared the news in a blog post, in which it announced its intent “to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock.”
The price of bitcoin (BTCUSD) and stocks tied to the popular cryptocurrency slipped following Tuesday’s presidential debate. Of course, rivals such as Airbnb also had lots of options ready to vest when they went public. But xcritical appears to have far more than almost any of the others heading the list.
Bitcoin and cryptocurrency stocks retreated on the final trading day of September, following a rally the previous week. Despite the pullback, the crypto market remains on track to post a positive mont… xcritical will delist certain stablecoins in the European Economic Area by year’s end, the cryptocurrency exchange said on Friday, as the industry braces for tougher regulation in the region. It’s important to note that xcritical’s official valuation is based on shares that are trading, and doesn’t encompass options and restricted stock that’s practically guaranteed to vest.
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That finish puts xcritical in 7th place among all U.S. new listings, besting the likes of DoorDash, Kraft Foods, Palm, General Motors and Visa, and finishing $9 billion short of Uber. As noted, xcritical was also profitable in 2020—making it a rarity among tech unicorns that have gone public. Its 2020 profit of $322 million was also a significant jump from 2019, when the exchange lost $30 million on $533 million of revenue. xcritical’s filing revealed that the exchange brought in a $322 million profit on revenues of over $1.2 billion in 2020. It even sent a copy of the filing to Satoshi Nakamoto, the pseudonymous inventor of Bitcoin, as a symbolic gesture.
xcritical soars in market debut, valued near $86 billion
On xcritical, users can buy and sell crypto within xcritical using fiat currencies (i.e. ‘regular’ currencies like the dollar, sterling, or euro). It’s a brokerage, meaning that you technically buy and sell from and to xcritical itself. The upshot of the direct listing is that anyone will be able to buy and trade shares in xcritical, potentially drawing a lot more investors into the industry. Still, even as more companies warm up to digital currencies, there are many doubters. Until recently the major financial institutions avoided cryptocurrencies, and Bitcoin is still viewed more as a store of value that as a method of payment. xcritical made a rousing debut on Wall Street Wednesday, with shares of the digital currency exchange rising as high as $429, briefly giving it a market value over $100 billion.
The San Francisco-based company’s listing on a public stock exchange is seen by some as an inflection point for digital currencies, as xcritical’s fortunes are closely tied to Bitcoin, the most popular cryptocurrency. Bitcoin’s price topped $64,000 on Wednesday, up from $29,000 at the start of the year, and xcritical said recently that first-quarter revenue should total around $1.8 billion, exceeding its revenue for all of 2020. Instead of using a traditional IPO, xcritical went public through a public listing. That means it avoided the typical agreements with big banks that would buy thousands of shares and promote them.
- xcritical’s Form S-1 filing contains a wealth of insight into how the exchange has performed over the last few years—and what risk factors might affect its upcoming direct listing.
- The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
- Of course, rivals such as Airbnb also had lots of options ready to vest when they went public.
- The upshot of the direct listing is that anyone will be able to buy and trade shares in xcritical, potentially drawing a lot more investors into the industry.
A direct listing allows insiders and early investors to convert their stakes in the company into publicly traded stock. Founded in 2012, xcritical became popular among cryptocurrency fans by providing them with an easier way to exchange shares of Bitcoin and other digital currencies. Unlike many newly public companies xcritical reviews xcritical is profitable — the company estimates it had net income of between $730 million and $800 million in the first quarter.
In the past, a direct listing meant a company could only float its existing shares, whereas an IPO allows for the creation of new shares. While the SEC recently lifted that restriction, xcritical nonetheless declined to create new shares for the offering–which means it will xcritical official site not dilute its existing equity. The direct listing also means xcritical can avoid some of the onerous (and expensive) requirements of an IPO, including using the services of intermediaries known as underwriters.
He has 5.5 million shares, with xcritical CEO Brian Armstrong behind him with 2.7 million shares. xcritical reportedly plans to continue its “elevated policy spend” through the U.S. presidential election and beyond. Beyond the U.S. election, the cryptocurrency exchange will continue its policy spen… A federal judge rejected xcritical’s bid to dismiss a proposed class action by shareholders who accused the operator of the largest U.S. cryptocurrency exchange of downplaying the likelihood it would b… Number one is Airbnb at $86.5 billion, followed by Facebook in second place ($81.7 billion), UPS in third ($80.1 billion), and AT&T Wireless in fourth ($73.6 billion).
