Coinbase is raising $2 billion through a debt offering despite receiving lawsuit threats from the U.S. Securities and Exchange Commission (SEC).
The crypto exchange says the offering will be used for general corporate purposes as well as investment in product development, potential mergers and acquisitions of products and technologies.
“This capital raise represents an opportunity to bolster our already strong balance sheet with low-cost capital.”
The firm initially aimed to raise $1.5 billion, but Reuters reports that it increased the offering by an additional $500 million due to market interest.
Coinbase announces its fundraising plan at a time when the SEC has warned that it will file a suit against the exchange if it pushes through with a plan to launch Lend, a financial product that will allow users to earn interest by lending out their digital assets.
The government regulator alleges that the program involves a security, but Coinbase disagrees.
“Coinbase’s Lend program doesn’t qualify as a security – or to use more specific legal terms, it’s not an investment contract or a note. Customers won’t be ‘investing’ in the program, but rather lending the USDC they hold.”
USD Coin (USDC) is a stablecoin created by Coinbase which is pegged to the US dollar.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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