Coinbase plans private offering of $1 billion of convertible senior notes

The funds are being raised to repay existing debts and general corporate needs.

In a statement released Tuesday, Coinbase said that the notes maturing in 2030 will be sold through a private offering to institutional investors. 

The crypto exchange also expects to grant a 30-day option to allow the purchase of up to an additional $150 million of the securities to cover over-allotments. 

Also Read: Bitcoin reaches all-time high of $72,000, should you invest? Here’s what experts say

The notes will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination, at the company’s election. 

“The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted. The interest rate, initial conversion rate, and other terms of the notes are to be determined upon pricing of the offering,” the company statement said.

Also Read: Crypto gets blamed for a real-life currency crisis

Coinbase intends to use the net proceeds from the offering to repay at maturity, or repurchase or redeem prior to maturity, from time to time and subject to market conditions, its outstanding 0.50% Convertible Senior Notes due 2026, 3.375% Senior Notes due 2028, and 3.625% Senior Notes due 2031.

Other general corporate purposes may include working capital and capital expenditures, and to pay the cost of the capped call transactions, the company added.

Coinbase shares declined about 3.6% after regular trading hours. The stock has jumped 47% this year. 

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 13 Mar 2024, 07:42 AM IST