In latest crypto news, Grayscale filed an S-1 with the US Securities and Exchange Commission (SEC) on November 13 for its initial public offering (IPO).
The company applied to list its Class A common stock on the New York Stock Exchange under the ticker symbol GRAY, following a confidential submission that Grayscale announced on July 14.
The number of shares to be offered in the Grayscale IPO remained undetermined at the time of filing.
Additionally, the price range for the proposed offering had not yet been established.
The transaction was subject to market conditions, without assurance as to whether or when the offering might be completed.
Financial Performance Shows $203 Million Profits
In recent crypto news, Grayscale reported $318.7 million in total revenue for the nine months ended September 30.
It posted a net income of $203.3 million during the same period and achieving an operating income of $202.4 million with an operating margin of 63.5%.
For the full year 2024, Grayscale generated $506.2 million in revenues and reported $282.1 million in net income alongside $365.4 million in operating income for that period.
The platform managed approximately $35 billion in assets under management as of September 30. There’s an average of $30.6 billion in assets under management for the period.
The company estimated its total addressable market to be approximately $4 trillion as of September 30, while calculating its serviceable available market to be roughly $365 billion for the same period.
As of September 30, Grayscale offered more than 40 products providing exposure to more than 45 tokens.
Crypto News: Major Investment Banks Assemble for Underwriting
Morgan Stanley, BofA Securities, Jefferies, and Cantor acted as lead managing bookrunners for the offering.
At the same time, Wells Fargo Securities, Canaccord Genuity, Piper Sandler, Keefe, Bruyette & Woods (A Stifel Company), and Needham & Company served as additional book-running managers.
The Benchmark Company and Compass Point are taking roles as co-managers in an underwriting syndicate that represented a mix of major Wall Street firms and specialized financial services companies.
Grayscale completed a private placement of $250 million in Series A Convertible Preferred Stock on October 22.
The convertible preferred stock carries an 8% annual dividend rate and automatically converts into Class A common stock upon consummation of the public offering.
The company operated as a subsidiary of Digital Currency Group, which controlled Grayscale through DCG Grayscale Holdco and GSOIH.
Crypto News: Dual-Class Structure and Regulatory Path Forward
The registration statement filed with the SEC had not yet become effective, as per recent crypto news reports.
Meaning that the securities could not be sold and offers to buy could not be accepted before effectiveness.
Grayscale structured the offering with a dual-class standard stock system where Class A common stock would carry one vote per share and economic rights, while Class B common stock would carry up to ten votes per share but no financial rights.
Prospectus copies related to the proposed offering will be available through the lead underwriters, including Morgan Stanley & Co. LLC, BofA Securities, Jefferies LLC, and Cantor Fitzgerald & Co., which have been designated as distribution points for preliminary prospectus materials.
This crypto news represented the most recent step for digital asset-focused investment platforms seeking access to traditional capital markets, following moves from names such as Circle, Bullish, Gemini, and Figure.