U.S.-based crypto exchange Coinbase has unveiled plans to raise $2 billion through a private offering of convertible senior notes, split equally across two tranches maturing in 2029 and 2032. According to the SEC filing, the notes will be senior, unsecured, and carry interest payable semi-annually.
The proceeds will cover capped call transactions, bolster operating expenses, and support strategic acquisitions in products, technologies, and companies. Additionally, it may grant participants up to $300 million in principal from its 2023 and 2032 note pools.
The move follows a successful capital-raising playbook pioneered by MicroStrategy, which raised over $8.1 billion using similar instruments. Convertible notes offer debt that can later convert into equity—often with valuation caps and investor discounts, making them appealing during expansion phases.
The announcement comes after Coinbase’s Q2 earnings, which revealed a 3.4% YoY revenue increase to $1.5 billion, but a steep drop in EPS to $0.12. Transaction revenue fell, reflecting lower market volatility and trading volumes, while operating expenses increased. Despite these challenges, gains from Coinbase’s Circle stake and crypto portfolio offered a silver lining.
This fundraise could position Coinbase for long-term growth as market conditions evolve.
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