Coinbase Plans $2 Billion Private Offering of Convertible Senior Notes
Coinbase Global, Inc. plans to raise $2 billion through a private offering of convertible senior notes aimed at qualified institutional buyers. The offering consists of two tranches of $1 billion each and is set to mature in 2029 and 2032. The funds will support general corporate purposes and strategic investments amid market pressure.
- Coinbase's stock fell over 3% to approximately $307 following the announcement.
- The capital raise aims to build a "war chest" for future market opportunities, including potential acquisitions.
- Coinbase recently acquired Spindl, a blockchain advertising platform, to enhance on-chain advertising capabilities.
- Proceeds will be used for working capital, stock repurchases, and capped call transactions to mitigate stock dilution from the notes' conversion.
- The convertible notes may convert into cash, Class A common stock, or both.