Coinbase Announces $1B Bond Sale

cryptonews.com:

Cryptocurrency exchange Coinbase Global, Inc., has announced a private offering of $1 billion convertible senior notes which will be due in 2030.

In an announcement, Coinbase said the private offering is only open to those investors who are classed as “qualified institutional buyers.” Bonds are a type of security sold by corporations, as a way of raising money from investors. When a firm needs to raise capital, issuing bonds is one way to do it.

“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,” said the firm in a press release.

Previously MicroStrategy has raised capital in the same way by announcing a similar offering. On March 8, MicroStrategy confirmed it had completed its previously announced offering of 0.625% convertible senior notes due 2030. The aggregate principal amount of the notes sold in the offering was $800 million.

MicroStrategy announced another seismic Bitcoin purchase of $800 million at an average price of $68,377 per coin. The new purchase was funded using proceeds from the $700 million convertible note offering. MicroStrategy owns 205,000 Bitcoin (BTC).

It is proving to be a busy week for Coinbase. On Monday, it emerged that Coinbase had filed a lawsuit against the Securities and Exchange Commission (SEC), seeking a court directive for the regulatory authority to establish clear guidelines for the cryptocurrency sector.

In the lawsuit detailed in their March 11 court