Crypto-Friendly Platform eToro Eyes US IPO at $5B Valuation: Report
Social trading platform eToro has confidentially filed for an initial public offering (IPO) with the United States Securities and Exchange Commission (SEC).
When a company files in such a manner, it means that it has submitted its initial registration statement with the SEC but is yet to make it public. This initial filing will help it gather feedback from the agency and make necessary adjustments before officially announcing its IPO plans.
eToro to Go Public in New York
According to a report by the Financial Times, which cited people with knowledge of the matter, the Israeli-based crypto and stock trading platform could go public in New York as early as Q2 2025if successful. It targets a valuation of $5 billion, up from a $3.5 billion market cap in 2023.
The report revealed that eToro has partnered with Goldman Sachs, Jefferies, and UBS to carry out its plans. This means that these investment banks will guide eToro through the IPO process.
Not the First
This is not the first time eToro has attempted to go public in the US. In 2021, it entered a Special Purpose Acquisition Company (SPAC) deal with FinTech Acquisition Corp. V. at a valuation of $10.4 billion.
However, the plan fell through due to the bear market of 2022. The SEC did not approve that plan.
Multiple crypto-related companies have also attempted to go public through a SPAC deal but have been unsuccessful. In July 2021, USDC issuer Circle filed for an IPO with the SEC through a SPAC deal but later abandoned the plan because it did not meet the SECs qualifications at the time. This deal could have given Circle a $9 billion valuation.
Crypto miner Prime Blockchain also canceled plans to go public through a SPAC deal in 2022.
If successful, eToro will join crypto companies like Coinbase and Bakkt to go public in the US. Several Bitcoin miners, including Marathon Digital, are also listed in the US.
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