Coinbase unveils $1B convertible notes offering for institutional investors



Share link:


  • Coinbase announced a $1 billion convertible notes offering, maturing in 2030, aimed at institutional investors, with an option for an additional $150 million to cover over-allotments.
  • The proceeds are designated for general corporate purposes, including repaying existing debts and potentially investing in or acquiring new companies, products, or technologies.
  • Following the announcement, Coinbase’s stock experienced a slight decrease, amidst a backdrop of significant year-over-year growth and recent bullish trends in the cryptocurrency market.

Coinbase announced on Tuesday its plan to offer $1 billion in convertible notes targeted at institutional investors, set to mature in 2030. 

The cryptocurrency exchange platform also intends to provide an option for the initial buyers to purchase up to an additional $150 million in notes to cover over-allotments. This offering aims to convert the notes into cash, shares of Class A stock, or a combination thereof, depending on the company’s preference.

The generated funds from this offering are designated for general corporate purposes. Specifically, Coinbase plans to allocate a portion of these funds towards the repayment and repurchase of existing debts, including 0.50% convertible senior notes due in 2026, 3.375% senior notes due in 2028, and 3.625% senior notes due in 2031. Moreover, the company may invest a part of the proceeds in acquisitions or investments in companies, products, or technologies that align with its strategic goals, as identified over time.

Following the announcement, Coinbase’s stock experienced a decrease of approximately 2.5% in after-hours trading, bringing it down to $249 per share, which is around $22 below its 52-week high. Despite this short-term dip, Coinbase has shown remarkable growth, with its value increasing by 308% over the past year and 82% in the previous month alone.

This financial move by Coinbase follows a similar strategy employed by MicroStrategy earlier in the month, which announced a $600 million private offering of convertible senior notes, later increased to $700 million.

The funds from MicroStrategy’s offering are also intended for corporate purposes, including additional Bitcoin purchases. Both companies’ stock values have been positively influenced by the launch of Bitcoin ETFs and the cryptocurrency’s recent surge to new all-time highs.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

BRICS and Europe
Subscribe to CryptoPolitan