Bitcoin

Coinbase announced on Tuesday its plan to offer $1 billion in convertible notes targeted at institutional investors, set to mature in 2030.&nbsp; 
The cryptocurrency exchange platform <a href="https://investor.coinbase.com/news/news-details/2024/Coinbase-Announces-Proposed-Private-Offering-of-1.0-Billion-of-Convertible-Senior-Notes-Due-2030/default.aspx" target="_blank" rel="noreferrer noopener nofollow">also intends</a> to provide an option for the initial buyers to purchase up to an additional $150 million in notes to cover over-allotments. This offering aims to convert the notes into cash, shares of Class A stock, or a combination thereof, depending on the company’s preference. 
The generated funds from this offering are designated for general corporate purposes. Specifically, Coinbase plans to allocate a portion of these funds towards the repayment and repurchase of existing debts, including 0.50% convertible senior notes due in 2026, 3.375% senior notes due in 2028, and 3.625% senior notes due in 2031. Moreover, the company may invest a part of the proceeds in acquisitions or investments in companies, products, or technologies that align with its strategic goals, as identified over time. 
Following the announcement, Coinbase’s stock experienced a decrease of approximately 2.5% in after-hours trading, bringing it down to $249 per share, which is around $22 below its 52-week high. Despite this short-term dip, Coinbase has shown remarkable growth, with its value increasing by 308% over the past year and 82% in the previous month alone. 
This financial move by Coinbase follows a similar strategy employed by MicroStrategy earlier in the month, <a href="https://www.cryptopolitan.com/microstrategy-600m-convertible-senior-notes/">which announced</a> a $600 million private offering of convertible senior notes, later increased to $700 million. 
The funds from MicroStrategy’s offering are also intended for corporate purposes, including additional Bitcoin purchases. Both companies’ stock values have been positively influenced by the launch of Bitcoin ETFs and the cryptocurrency’s recent surge to new all-time highs.

Coinbase unveils $1B convertible notes offering for institutional investors

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