The convertible notes will be sold to institutional investors in a private offering.
The proceeds will be used to repay debt and other general corporate purposes.
Coinbase (Nasdaq: COIN), the largest cryptocurrency exchange in the United States, is planning to raise $1 billion through the issuance of convertible senior notes. Announced yesterday (Tuesday), the proceeds will be utilized to repay debt and other general corporate purposes.
Investors React to the Bond Sale
The company is avoiding the sale of its equity, which could hurt its stock prices. However, the publicly-listed stock prices of the company dropped more than 1 percent after hours following the announcement of the convertible bond issuance.
The exchange will sell the convertible notes through private offerings only to institutional investors. The convertible notes will have a maturity date in 2030 and will allow the investors to redeem them in cash or Class A shares of the company or in a combination of both.
Furthermore, the San Francisco-headquartered exchange expects to grant a 30-day option to purchase up to an additional $150 million notes to cover over-allotments.
The debt the exchange wants to repay with the planned convertible notes is outstanding: 0.5 percent convertible senior notes due in 2026, 3.375 percent senior notes due in 2028, and 3.625 percent senior notes due in 2031. The general corporate purpose to be fulfilled by the proceeds from the convertible notes might include “working capital and capital expenditures, and to pay the cost of the capped call transactions.”
“Coinbase may also use a portion of the net proceeds to make investments in and acquisitions of other companies, products, or technologies that Coinbase may identify from time to time,” the exchange noted.
The MicroStrategy Playbook
Coinbase’s plan to issue the convertible notes echoes a model mastered by MicroStrategy, a business analytics company known for its massive Bitcoin investment. Under the leadership of Michael Saylor, MicroStrategy purchased 205,000 Bitcoin worth around $15 billion over the years by raising about $2 billion through convertible notes. MicroStrategy sold $700 million worth of convertible notes.
Coinbase's decision came when the cryptocurrency market witnessed a massive bullish sentiment. Bitcoin is trading at an all-time-high value, nearing $73,000 a piece.
Coinbase (Nasdaq: COIN), the largest cryptocurrency exchange in the United States, is planning to raise $1 billion through the issuance of convertible senior notes. Announced yesterday (Tuesday), the proceeds will be utilized to repay debt and other general corporate purposes.
Investors React to the Bond Sale
The company is avoiding the sale of its equity, which could hurt its stock prices. However, the publicly-listed stock prices of the company dropped more than 1 percent after hours following the announcement of the convertible bond issuance.
The exchange will sell the convertible notes through private offerings only to institutional investors. The convertible notes will have a maturity date in 2030 and will allow the investors to redeem them in cash or Class A shares of the company or in a combination of both.
Furthermore, the San Francisco-headquartered exchange expects to grant a 30-day option to purchase up to an additional $150 million notes to cover over-allotments.
The debt the exchange wants to repay with the planned convertible notes is outstanding: 0.5 percent convertible senior notes due in 2026, 3.375 percent senior notes due in 2028, and 3.625 percent senior notes due in 2031. The general corporate purpose to be fulfilled by the proceeds from the convertible notes might include “working capital and capital expenditures, and to pay the cost of the capped call transactions.”
“Coinbase may also use a portion of the net proceeds to make investments in and acquisitions of other companies, products, or technologies that Coinbase may identify from time to time,” the exchange noted.
The MicroStrategy Playbook
Coinbase’s plan to issue the convertible notes echoes a model mastered by MicroStrategy, a business analytics company known for its massive Bitcoin investment. Under the leadership of Michael Saylor, MicroStrategy purchased 205,000 Bitcoin worth around $15 billion over the years by raising about $2 billion through convertible notes. MicroStrategy sold $700 million worth of convertible notes.
Coinbase's decision came when the cryptocurrency market witnessed a massive bullish sentiment. Bitcoin is trading at an all-time-high value, nearing $73,000 a piece.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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