Exodus announced that the crypto wallet company had received approval from the U.S. SEC to start offering shares of its wallet company as Class A Common Stock under Regulation A.
Exodus started trading in the market late last night in the U.S. and is accessible via the wallet itself. Exodus has survived as a desktop wallet for crypto users for numerous years, cooperative with a collection of digital assets. The wallet additionally hosts a characteristic that enables users to exchange assets in the wallet. Now, as per the official press release, users can purchase Exodus shares via the app.
Further, Exodus details that it applied with the SEC for issuing Class A Common Stock under Regulation A in February. Regulation A provides a form of exemption under which the entities can sell unregistered shares, as per Investor.gov. The company started to trade the stock at 9:00 PM EST on Thursday, April 8, 2021, at a $27.42 per share price. The company’s strategy is different as it decided to sell shares on its in-app trading platform instead of mainstream exchanges. Buyers can trade as little as a single share or as much as 2,733,229 shares.
Exodus Shares Are Only Accessible to the U.S. Residents
The announcement briefs that only U.S. residents can purchase Exodus shares. Further, people from Arizona, Florida, and Texas cannot participate. Exodus is recently exploring collaboration with the ATS (alternative trading systems) that could increase Exodus Shares’ availability. It aims to make the Class A common stock accessible for trading on various ATS, involving the tZERO ATS in nine months of this offering. Exodus is exploring alliances with other organizations, like MERJ Exchange, for investors resided globally to make Exodus shares available for those in provinces outside the USA. Exodus will offer updates as they become feasible.
The news occurs less than a week before the leading crypto exchange Coinbase declared that it would go public on April 14. Kraken, also a crypto exchange, intends to go public in 2022 after originally proposing that course of action in late March. Stock and crypto trading company Robinhood is additionally proposing a stock offering. Moreover, the companies mentioned above are all well-known and have drawn corporate and V.C. investments; stock offerings may appeal to these same investors. Those factors could partly clarify why crypto exchanges are leaning toward traditional stock offerings.