top of page
ad cnp.png

Coinbase Plans To Raise $1.5B Via Debt Offering

Coinbase, the largest cryptocurrency exchange in the United States, has planned to raise $1.5 billion via a debt offering.

It has been reported that the Nasdaq-listed crypto exchange is looking to use the capital raised to further grow the company’s balance sheet for general corporate purposes as well as potential investments and acquisitions of other companies, products, or technology.

Coinbase said that the closing of the offering is subject to market and other conditions.

However, the new raise specifically aims to offer a $1.5billion aggregate principal amount of the company’s senior notes due 2028 and 2031, which will be fully guaranteed by Coinbase Inc., a wholly-owned Coinbase subsidiary acting as its holding company.

The report said that the interest rate, redemption provisions, and other terms of the raise are subject to negotiations between the firm and initial purchasers. Coinbase noted that the notes and the related guarantee would be only offered and sold by means of a private offering memorandum to persons “reasonably believed to be qualified institutional buyers” under local securities laws as well as outside the United States.

Coinbase added:

“Neither the notes nor the related guarantee have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from such registration requirements.”

Likewise, the news comes amid Coinbase facing increased attention from securities regulators, with the US Securities and Exchange Commission threatening to sue the exchange over its upcoming crypto lending program last week.

Brian Armstrong, the CEO of Coinbase, pointed out that there are a number of other crypto firms on the market that currently provide similar lending services to their customers. Facilitating over $5.6 billion in daily trading volumes, Coinbase is one of the world’s largest cryptocurrency exchanges.

Thus, the company previously planned to raise $1.25 billion through a private debt security offering in May 2021, shortly after going public with a direct listing on Nasdaq in mid-April.

Source: Cointelegraph




bottom of page