Crypto Exchange Coinbase Unveils Plan to Raise $1.5 Billion by Selling Bonds

Sep, 15 2021

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Coinbase, a global cryptocurrency exchange, has announced a proposal to raise $1.5 billion by selling bonds, despite its ongoing legal battle with the Securities and Exchange Commission (SEC).

Coinbase Intends to Issue Bonds for $1.5 Billion

Coinbase Global Inc. (Nasdaq: COIN) stated on Monday that it plans to offer $1.5 billion in aggregate principal amount of its Senior Notes due 2028 and 2031 in a private offering, subject to market conditions and other criteria."

Coinbase Inc. will “fully and absolutely guarantee” the notes, according to the company, and “the interest rate, redemption provisions, and other parameters of each series of notes will be decided through discussions between Coinbase and the original purchasers.” The following are the specifics of the announcement:

Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may include continued investments in product development, as well as potential investments in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future.

“Neither the notes nor the associated guarantee have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction,” the global crypto exchange added.

Coinbase had previously revealed that the company had received a Wells Notice from the Securities and Exchange Commission (SEC) about its lending program. If the product is released, the regulator intends to sue the company, but Coinbase stated, "We don't know why... The SEC provided no explanation.”