Coinbase Global, the leading crypto exchange in the U.S., has recently unveiled a substantial bond offering, introducing US$1.1 billion in unsecured convertible senior notes set to mature in 2030. This initiative targets qualified institutional buyers. The offered notes are designed to accrue interest, payable semi-annually, and offer investors an option to convert their holdings into Coinbase shares or cash, depending on their preference.
In addition to the initial offering, Coinbase is extending a 30-day opportunity for the purchase of up to an additional US$150 million in notes to accommodate potential over-allotments.
This move by Coinbase was initiated amidst a notable uptick in its stock price, which reached US$269.39 by the afternoon trading session on Wednesday, coinciding with Bitcoin’s sustained performance in the record-high price range. Over the past year, Coinbase‘s stock value has escalated by more than 300%, with a remarkable 82% increase observed in just the last month.
The crypto sector, including firms like MicroStrategy and Coinbase itself, has witnessed a significant boost in stock prices, propelled by the burgeoning performance of Bitcoin and the introduction of groundbreaking Bitcoin ETFs.
Coinbase‘s venture into the bond market with this offering parallels the approach taken by MicroStrategy. The latter successfully closed a US$800 million offering of convertible senior notes before announcing a substantial Bitcoin acquisition funded through a convertible note offering. Coinbase‘s strategic decision to raise capital via this bond offering underscores the evolving financial strategies employed by crypto-focused firms to leverage the dynamic crypto market conditions.
