American crypto exchange and custodian Gemini has now submitted an initial public offering (IPO) application with the US Securities and Exchange Commission (SEC). The crypto custodian aims to become the third crypto company to list on a US exchange, following Coinbase in April 2021 and Bullish just last week.
Gemini To Use Share Proceeds To Settle Debt To Galaxy, Others
In documents dated August 15, Gemini filed to list company shares on the Nasdaq exchange under the ticker GEMI. This development comes two months after the crypto exchange initially announced plans for an IPO. Notably, the IPO price was excluded from this application, which included the proposed stock structure and plans for share net profits.
The Gemini S-1 document stated plans to offer only shares of their Common Class A Stock on the Nasdaq exchange. For context, Gemini will issue two types of common stock after the IPO, i.e., Class A and Class B. Holders of Class A shares will be granted one vote per share, giving them a standard say in company decisions.
By contrast, each Class B share will carry ten votes, providing its holders with significantly greater influence over corporate matters than those holding Class A stock. In this case, all new investors are expected to receive Class A shares and will collectively control only a limited percentage of Gemini’s total voting power.
Meanwhile, co-founders Cameron and Tyler Winklevoss, along with their affiliates, will own all of the Class B stock, allowing the twins to retain majority control of the exchange. Upon receiving the net proceeds from the IPO, following expenses such as underwriting discounts and commissions, Gemini intends to use the funds primarily for general corporate purposes such as funding day-to-day operations, investing in new technology, etc.
In addition to supporting operations and growth, Gemini also stated it may use part of the proceeds to repay existing debt obligations. These include loans under the Galaxy Lending Agreement and the Master Repurchase Agreement with NYDIG Funding LLC.
Notably, the lead underwriters for the Gemini planned IPO are Goldman Sachs and Citigroup, who are responsible for coordinating the deal, setting the price range, and ensuring supply matches demand. Alongside them are other reputable investment firms such as Morgan Stanley, Cantor Fitzgerald, Evercore ISI, Mizuho Securities, etc.
US Crypto Train Forges On
In addition to Gemini, other crypto-focused firms seeking to go public include the exchange BitGo, and digital asset investment firm Grayscale. This wave of applications, among other factors, including the Bitcoin Reserve and recent stablecoin regulation, underlines the growing pro-crypto environment in the US.
According to data from Tradingview, the total crypto market is valued at $3.93 trillion, reflecting a 0.47% gain in the past day.