forkast.news
Coinbase Global, Inc. has announced a private offering of US$1 billion in unsecured convertible senior notes due in 2030, aimed at qualified institutional buyers.
The notes, which will accrue interest payable semi-annually, provide investors the option to convert into shares of Coinbase or cash.
The company also plans to offer a 30-day option to purchase up to an additional US$150 million in notes to cover over-allotments.
This strategic financial move comes as Coinbase’s stock price experiences a surge, with COIN trading as high as US$269.39 on Wednesday, as 2:00 p.m. ET, as Bitcoin continues trading at a record-high range.
The company’s stock has risen by more than 300% in the past year and 82% in the past month.
Coinbase and other crypto-related firms like MicroStrategy have seen their stocks boosted by the performance of Bitcoin and the launch of record-breaking Bitcoin ETFs.
Coinbase’s decision to raise capital through a bond offering mirrors a similar strategy employed by MicroStrategy, which recently completed an US$800 million offering of convertible senior notes and subsequently announced a significant Bitcoin purchase funded by a convertible note offering.