Coinbase
$1.66B
has announced plans to raise $2 billion through a private sale of convertible notes.
The funds could be used for business expansion, strategic purchases, and possibly buying Bitcoin
$113,702.83
. Coinbase became the first company in the S&P 500 index to do so with money raised through a debt sale.
The cryptocurrency exchange plans to issue two sets of unsecured convertible notes. One set, worth $1 billion, will mature in 2029. The second, also worth $1 billion, is due in 2032.
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These notes will pay interest twice a year. The exact interest rate and the terms for converting the debt into shares will be confirmed once pricing is complete.
Coinbase may also allow early buyers to purchase an extra $150 million of each note, which would bring the total offering up to $2.3 billion if fully taken.
Most of the money raised will go toward covering the cost of financial tools tied to the convertible notes. These tools help limit how much Coinbase shares could be diluted if the notes are converted into stock in the future.
Any remaining funds will be used for general needs, including day-to-day operations, equipment, or buying other businesses, services, or technologies.
Coinbase also suggested that it may use part of the money to buy Bitcoin. If it does, it would be the first company listed on the S&P 500 to fund such a purchase using debt.
Recently, Coinbase accused the Federal Deposit Insurance Corporation (FDIC) of continuing to hold back important records. What did it say? Read the full story.
