Coinbase looks to raise $2 billion through senior convertible notes

Cryptocurrency exchange Coinbase announced on Tuesday that it is looking to raise a total of $2 billion through a proposed private offering of senior convertible notes. The company plans to do this by offering two sets of notes: one that will be due in 2029 and one that will be due in 2032.

Coinbase will also be giving initial purchasers of the notes a chance to buy up to an additional $150 million in principal for the 2029 series of notes and $150 million for the 2032 series of notes. 

These notes will have interest payments attached to them, which will accrue semi-annually in arrears.  

Coinbase has made an 8-K filing regarding the same

The crypto exchange firm has also made an 8-K filing. Alongside the issue of notes, Coinbase will also be entering into capped call transaction agreements. These agreements will be privately negotiated and are expected to prevent dilution of Coinbase’s Class A common stock and limit any cash payments to be made in excess of the principal amount offered on the notes. 

The company’s offering mimics a growing pattern among crypto firms and non-crypto firms alike, who want to raise money for an aggressive crypto-investment strategy or use the cash for other purposes, such as working capital, acquisitions, repayment of earlier debt, and expansion of other assets, alongside a purchase of crypto.  

Source: Yahoo Finance