As we read in our latest Coinbase news, Coinbase will award all employees 100 shares in a surprise giveaway before its public listing.
According to Coinbase, the surprise giveaway is a way of saying “thank you,” but only 1700 full-time workers are qualified. Because of Coinbase’s latest decision to make the giveaway, the list of people willing to cash in will be longer than anticipated when the company goes public. Coinbase will award 100 shares to each of its 1700 workers around the world, implying that each full-time employee will be $25K richer based on the NASDAQ reference rates. The real price at which the stock trades could be higher or lower.
The gift was announced at a meeting on March 25th, and the Irish publication Business Post first reported the distribution of 100 shares after learning about it from employees in the Dublin office. A Coinbase representative confirmed the giveaway, describing it as a “thank you” to the company’s employees. In recent years, Coinbase has replaced all equity grants to new employees with Restricted Stock Unites, which allow recipients to accumulate shares over time. The distribution, on the other hand, is a no-strings-attached grant.
Coinbase, like other fintech firms, depends on vendors to conduct lower-level employment, but people who provide janitorial services or work in the cafeteria will not earn any shares. Meanwhile, former and current senior executives are awash in scandal. According to regulatory filings, Brian Armstrong, as well as the chief legal officer, own thousands of millions of shares in Coinbase.
Coinbase is making its shares available to the public through a direct listing, which differs from a traditional IPO in that the company does not rely on underwriters and does not issue a new batch of shares. Coinbase stocks are expected to begin trading today in San Francisco, where the company is headquartered. The listing is a significant milestone for the industry, and it is expected to influence the price of crypto companies, which will have even greater implications for BTC.
As previously reported, Coinbase announced a few days ago that it had received approval from the US Securities regulator that the US SEC will list its share on the Nasdaq direct listing under the ticker “COIN,” and in retrospect, the direct listing requires a company to save the money that it pays to an investment bank rather than raising it.