Coinbase set to offer $1 billion via convertible notes
Coinbase’s offering will better position the firm to pay off three existing debts due in 2026, 2028 and 2031.
Cryptocurrency exchange Coinbase plans on raising $1 billion from senior convertible notes to raise cash to repay debts and for “general corporate purposes.”
The senior convertible notes — a debt security that can later be converted into equity, like stock — will only be privately offered to eligible institutional buyers and must be repaid by April 1, 2030, unless earlier repurchased, redeemed or converted, the firm said in a March 12 blog post.
The notes are a valuable tool for companies looking to raise capital and Coinbase is seemingly jumping at the chance to take on debt while investors are confident in the firm, with its share price at an over two-year high, per Google Finance.
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