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Coinbase Announces Private Offering
Cryptocurrency exchange Coinbase Global, Inc., has announced a private offering of $1 billion convertible senior notes which will be due in 2030. The private offering is only open to qualified institutional buyers.
What are Bonds?
Bonds are a type of security sold by corporations to raise money from investors. When a firm needs to raise capital, issuing bonds is one way to do it.
Details of the Offering
Coinbase also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $150.0 million principal amount of notes solely to cover over-allotments. The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted.
Following MicroStrategy’s Lead
MicroStrategy has previously raised capital in a similar way by announcing a comparable offering. On March 8, MicroStrategy confirmed the completion of its offering of 0.625% convertible senior notes due 2030, with an aggregate principal amount of $800 million. MicroStrategy also made a significant Bitcoin purchase funded by proceeds from a convertible note offering.
Coinbase’s Lawsuit Against SEC
Coinbase has filed a lawsuit against the Securities and Exchange Commission (SEC) seeking clear guidelines for the cryptocurrency sector. The lawsuit challenges the SEC’s lack of formal rulemaking for the crypto sector, asserting that the agency’s actions hinder industry development and clarity.
SEC’s Regulatory Stance
The filing criticizes the SEC for its passive stance on crypto regulation, arguing that the absence of specific rules has left the sector in a regulatory grey area. Coinbase stated, “Market participants responded by investing heavily in a now two-trillion-dollar industry and built their businesses in compliance with relevant agencies’ regulatory frameworks.”
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
