Coinbase plans to raise $1B through convertible note offering amid Bitcoin’s record highs

Coinbase exchange plans to raise $1 billion through convertible notes, targeting institutional investors amid bitcoin’s growth and US bitcoin ETFs setting records.

Furthermore, the notes will mature by 2030 and can be converted into cash, Class A stock, or a mix of both. Plus, the company aims to allocate the funds towards general corporate needs and settle existing debts. This includes convertible senior notes and senior notes due between 2026 and 2031.

Besides, some proceeds may be used for investing in or acquiring other firms, products, or technologies aligning with Coinbase’s strategic vision.

Recently, the exchange’s stock saw over 2.5% decrease after the announcement, trading at $248 per share. However, Coinbase has experienced a significant 308% growth over the past year.

This move mirrors a similar initiative by MicroStrategy, which launched a convertible note offering for funds, initially a $600 million offering but later increased to $700 million.

The success of bitcoin ETFs and the cryptocurrency’s record-breaking performance has positively influenced the value of both Coinbase and MicroStrategy stocks.