US-based crypto exchange platform Coinbase says it will raise $1 billion in convertible bonds from institutions.
In a new press release, Coinbase announced today announced its intention to privately offer $1 billion of convertible notes due 2030 to “persons reasonably believed to be qualified institutional buyers.”
“The notes will be senior unsecured notes of Coinbase, will bear interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted.
The notes will be convertible, at Coinbase’s option, into cash, shares of Coinbase’s Class A common stock, or a combination thereof.”
Coinbase plans to use the funds to repay, redeem or repurchase other outstanding convertible notes and for general corporate purposes, the press release said.
“Coinbase intends to use the net proceeds from the offering to redeem, from time to time and subject to market conditions, the outstanding 0.50% Convertible Senior Notes due 2026 and 3.375% Senior Notes due 2028 at maturity to pay, or to repurchase or redeem before the maturity date. and 3.625% senior notes due 2031 and for other general corporate purposes.”
Last month, Coinbase reported that Coinbase posted its first profitable quarter in two years, sending its stock price soaring. According to its earnings report, Coinbase had net income of about $273 million, or $1.04 per share, at the time.
MINT is trade for $265.62 at the time of writing, a gain of 8.4% over the past 24 hours and an increase of 81% over the past 30 days.
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