Coinbase, a cryptocurrency exchange platform, has announced that it is raising $1 billion via convertible notes to reduce debt and fund general corporate expenses. Convertible notes are a debt instrument that can be converted into shares over time, like common stock.
Raise $1 billion
Coinbase said it would offer senior convertible notes to eligible institutional buyers, and that they must be redeemed by April 1, 2030, unless previously repurchased, reduced or converted. The notes would be senior to common savings, meaning that holders would have priority in the event of bankruptcy or liquidation.
Repayment conditions
Coinbase's convertible notes accrue interest semi-annually and can be converted into cash, Coinbase shares or a combination of both. The company has also indicated that it plans to use the proceeds to redeem its own senior convertible notes due in 2026, 2028 and 2031. The notes have interest rates of 0.50%, 3.375% and 3.625% respectively.
Coinbase also announced an $800 million offering of additional convertible notes, with the proceeds used to buy more bitcoins for its reserve.
Conclusion – Coinbase raises $1 billion with convertible notes
Coinbase has announced that it is raising $1 billion via convertible notes to reduce debt and fund general corporate expenses. Convertible notes are a debt instrument that can be converted into shares at term, and Coinbase said it planned to use the proceeds to repay its own senior convertible notes due in 2026, 2028 and 2031.
