According to a March 12 report, Coinbase announced plans to launch a $1 billion bond issue to raise money for its growth and expansion. submit.
The notes, referred to as unsecured convertible senior notes, will mature in 2030 and offer investors the option to convert their holdings into Coinbase stock or cash at that time. The offering also includes a 30-day option to purchase an additional $150 million of notes to cover the over-allotments.
The strategy is seen as a smart maneuver to capitalize on the crypto market’s positive momentum while protecting shareholder value.
Coinbase has also introduced “negotiated capped call transactions” as part of its bond offering. This measure is intended to mitigate the dilutive impact on shareholders when debt is converted into equity.
Proceeds from the bond issuance will be earmarked for various purposes, including debt repayment, financing for the capped call transactions and potential acquisitions, signaling Coinbase’s ambitious agenda for growth and consolidation within the crypto economy.
Coinbase shares rise with crypto
This announcement follows a significant increase in the value of Bitcoin, which recently reached an all-time high, crossing the $73,000 mark.
The bullish trend in the crypto market is accompanied by a 48% increase in Coinbase’s stock price this year to levels last seen in December 2021 – a rally that has prompted some Wall Street analysts to change their previously cautious view review the company’s shares.
Financial giants like Raymond James and Goldman Sachs have gone from bearish to more optimistic viewssupported by the sector’s robust performance.
At the time of writing, COIN was trading at $256.14, an increase of 11.91% from the past week and 82.45% from the previous month.
Coinbase previously offered $1.25 billion in senior convertible notes May 2021, which instead occurred after a market crash related to the collapse of the TerraUSD stablecoin. The company has regularly repurchased its outstanding debt.
The post Coinbase Seeks to Raise $1 Billion Through Bond Offering Amid Bullish Market Trend first appeared on CryptoSlate.