Bitcoin

Bull Market

Billion

Raise

<div class="insidebitcoins">
 US crypto exchange Coinbase plans to raise $1 billion through the sale of convertible bonds, deploying a strategy similar to that Michael Saylor used to fund purchases of Bitcoin by MicroStrategy.
 The sale of the convertible bonds, via a private offering, enables Coinbase to avoid an equity sale that would dilute existing shareholders and risk impacting its stock price. Holders will be able to convert them into either Coinbase shares or cash in 2030.
 Saylor’s MicroStrategy has also used the debt market to fund its Bitcoin hoard, now worth in the region of $15 billion. It’s raised more than $2 billion from convertible bonds in recent years, the most recent being a $700 million offering of convertible senior notes this month.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Coinbase Announces $1 Billion Convertible Bond Offering pic.twitter.com/8jXxkvAidn
 — HZKE (@HZKE_AI) March 12, 2024
 </blockquote>
 
 <h2 id="span-style-font-weight-400-coinbase-takes-an-extra-precaution-span">Coinbase Takes An Extra Precaution</h2>
 Coinbase is taking an extra precautionary measure to prevent shareholder dilution during the conversion period, which MicroStrategy did not implement in its recent deal. 
 To protect its investors, Coinbase will offer “negotiated capped call transactions,“ a hedge to ensure existing shareholders are not diluted.
 Coinbase said it will use the funds to repay an existing convertible senior note issue, and for general corporate purposes that might include working capital and capital expenditures, as well as to pay for the capped call transactions.
 <h3 id="span-style-font-weight-400-related-articles-span">Related Articles:</h3>
 <ul>
 <li style="font-weight: 400;">What is a Crypto Presale? A Quick Guide to Getting in on the Ground Floor of New Cryptocurrencies!</li>
 <li style="font-weight: 400;">Coinbase Says The SEC Is Breaking The Law By Refusing To Make Crypto Rules&nbsp;&nbsp;&nbsp;</li>
 <li style="font-weight: 400;">NFT Sales Jump 16% Today – Is The NFT Bull Market Now About To Start?</li>
 </ul>
 Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/coinbase-to-raise-1-billion-from-convertible-bond-sale-using-michael-saylor-s-microstrategy-playbook-tbt82418.html">https://thebittimes.com/coinbase-to-raise-1-billion-from-convertible-bond-sale-using-michael-saylor-s-microstrategy-playbook-tbt82418.html</a>
</div>

Coinbase To Raise $1 Billion From Convertible Bond Sale, Using Michael Saylor’s MicroStrategy Playbook

Table of Contents

TheBitTimes

Other articles published on Mar 13, 2024

Binance Continues Meme Coin Promotion For Shiba Inu, Dogecoin, WIF, And Others

Memeinator Raise Passes $6.5M as Presale Nears Final Stage

How This Crypto Has Captivated 2024 – Is It Your Ticket to Unimaginable Wealth?

Nigeria Intensifies Crackdown on Binance with User Data Request

OKX Receives Approval for the MPI License From Singapore

Grayscale’s Bitcoin ETF market share falls below 50% amid growing competition

Join our free newsletter for daily crypto updates!