Coinbase is preparing to raise billions of dollars in additional funding following its direct listing on the Nasdaq in April in an effort to accelerate its growth.
In a new statement, the US-based crypto exchange announces a plan to offer $1.25 billion of convertible senior notes in a private offering to institutional investors.
A senior convertible note is a type of debt security that can be converted into shares of the issuer. In the crypto exchange’s case, the firm says the notes can be converted into cash, Coinbase’s class A common stock, or a combination of both.
“The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on June 1, 2026, unless earlier repurchased, redeemed or converted.”
The firm says that it will determine the interest rate, initial conversion rate, and other terms of the notes when they introduce the price for the offering.
Coinbase adds that they plan to use the additional capital to fund its operations and future expansions.
“Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may 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 in the future.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/estevez
