Blockchain and smart-contract platform Chia Network has confidentially submitted a draft registration statement to the Securities and Exchange Commission, moving a step closer to a US initial public offering.
In a Friday press release, the crypto startup revealed that it has submitted a draft registration statement on Form S-1 for a proposed IPO to the SEC.
Chia added that the size and price range for the proposed IPO has not been decided yet.
The blockchain platform said that the IPO “is expected to commence after the SEC completes its review process.”
Founded by BitTorrent creator Bram Cohen, Chia provides regulatory-compliant blockchain setting the standard for the infrastructure of digital currency and inclusive access to global, decentralized finance.
The crypto startup raised $61 million from investors including Richmond Global Ventures and Andreessen Horowitz back in 2021, doubling its valuation to about $500 million in the funding round, as reported by Bloomberg
At the time, Gene Hoffman, Chia’s president and chief operating officer, said the company is looking to a traditional IPO to expand operations and clarify its regulatory environment.
“Our goal has always been to go public relatively quickly as that will significantly clarify our regulatory environment and allow customers to use currency to hedge public market volatility, which is different from other coins.”
Chia’s native token XCH has surged more than 11% following the news.
At the time of writing, the token is trading at $45.97, up 11.4% over the past day. However, it is down a staggering 97% compared to its all-time high of $1,645.12 registered in May 2021.
More Crypto Companies Aspire to Go Public
Aside from Chia, a number of other crypto companies have also been angling for the public markets.
Jesse Powell, the co-founder of cryptocurrency exchange Kraken, said the company was positioning itself for an IPO in September last year when he announced that he is stepping down from his position as CEO.
Earlier this week, Singapore-based Bitcoin mining firm Bitdeer Technologies Group announced that it is going public after completing a merger with a special-purpose acquisition company. The company originally planned to go public in November 2021.
With its Nasdaq listing, Bitdeer joins crypto mining companies Riot and Marathon, both of which have previously gone public.
It is worth noting that crypto-related companies that have gone public have faced numerous challenges.
For instance, Coinbase Global has recently received a so-called “Wells notice” from the SEC, which threatens the crypto exchange with legal actions regarding some of its listed digital assets, its staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
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