<img width="1200" height="800" src="https://coingape.com/wp-content/uploads/2024/01/ITUMB357O5G6JKHJTLH5RTEVVQ-1-e1705545963181.jpg" class="attachment-full size-full wp-post-image" alt="Coinbase" decoding="async" style="float:right; margin:0 0 10px 10px;">
American cryptocurrency exchange <a href="https://coingape.com/coinbase-momentum-builds-stocks-exceed-2021-listing-price/" rel="noopener noreferrer nofollow">Coinbase Global Inc.</a> is planning to explore convertible senior notes as the new means of raising funds.
<h2 id="strong-the-coinbase-convertible-senior-notes-strong">The Coinbase Convertible Senior Notes</h2>
Coinbase&nbsp;hinted at its plan to offer up to $1 billion in convertible senior notes which would be due in 2030.&nbsp;
Per Coinbase’s plan, the notes will be put up for sale to institutional investors through a private offering. Upon its launch, the exchange is hoping to grant a 30-day option that would allow those who make purchases of up to an additional $150 million of the securities to cover over-allotments.&nbsp;
The notes can be converted into a number of forms including cash, shares of Coinbase’s Class A common stock, or a combination, but at the company’s election. In the long run, Coinbase expects to use the proceeds to either repay at maturity or repurchase or redeem prior to maturity, its outstanding 0.50% convertible senior notes, 3.375% senior notes, and 3.625% senior notes.
Meanwhile, the outstanding 0.50% convertible senior notes are not due until 2026, neither is the 3.375% due till 2028 nor the 3.625% till 2031. Some of these net proceeds may be utilized for general corporate purchases like working capital and costs related to the capped-call transactions. Coinbase hopes to engage in a capped-call transaction with a minimum of one of its customers.&nbsp;
The capped-call transactions will suffice for those Coinbase common stocks underlying the notes from the beginning.
<h2 id="strong-like-coinbase-like-microstrategy-strong">Like Coinbase Like MicroStrategy</h2>
Business intelligence software company MicroStrategy recently <a href="https://coingape.com/breaking-microstrategy-bitcoin-holdings-exceed-200000-in-latest-acquisition/" rel="noopener noreferrer nofollow">made an acquisition of more Bitcoin</a>, bringing its total holding to around 203,000 BTC.&nbsp;
Each Bitcoin was purchased at an average price of $68,477, bringing the total acquisition to approximately $821.7 million. Apart from keeping up with its Bitcoin strategy, another intriguing update is that the acquisition was made using proceeds from convertible notes and excess cash.&nbsp;
Only a few days before the latest purchase, MicroStrategy had <a href="https://coingape.com/breaking-microstrategy-upsizes-notes-sale-to-700m-to-buy-more-bitcoin/" rel="noopener noreferrer nofollow">upscaled its notes sale</a> to a total of $700 million. The notes included convertible senior notes due in 2030. Also, in MicroStrategy’s case, initial purchasers were granted the option to purchase an additional $100 million worth of notes within a 13-day window following the issuance.
With Coinbase and MicroStrategy exploring this debt offering option, it is fast becoming a trend to watch out for.
The post <a href="https://coingape.com/breaking-coinbase-unveils-plans-to-offer-1b-in-convertible-senior-notes/" rel="noopener noreferrer nofollow">Breaking: Coinbase Unveils Plans To Offer $1B In Convertible Senior Notes</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Breaking: Coinbase Unveils Plans To Offer $1B In Convertible Senior Notes

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