Coinbase Global, Inc. has revealed plans for a private offering of $1 billion in convertible senior notes, set to mature in 2030.
According to Coinbase, this private offering is exclusively available to investors classified as “qualified institutional buyers.” Bonds serve as a form of security through which corporations can raise capital from investors.
Coinbase further stated that it anticipates granting the initial purchasers of the notes a 30-day option to acquire up to an additional $150.0 million principal amount of notes, solely to address over-allotments. These notes will constitute senior, unsecured obligations of Coinbase, accruing interest payable semi-annually in arrears, and will reach maturity on April 1, 2030, unless earlier repurchased, redeemed, or converted, as per the firm’s press release.
Taking a Leaf out of Microstrategy’s Book
Previously, MicroStrategy employed a similar approach to raise capital, announcing a comparable offering. On March 8, MicroStrategy confirmed the completion of its previously disclosed offering of 0.625% convertible senior notes maturing in 2030. The total principal amount of notes sold in the offering amounted to $800 million.
Following this, MicroStrategy made another significant Bitcoin acquisition, purchasing $800 million worth of the cryptocurrency at an average price of $68,377 per coin. This latest acquisition was financed using proceeds from the $700 million convertible note offering. MicroStrategy now possesses 205,000 Bitcoin (BTC).
Coinbase Files Law Suit Against SEC
It’s turning out to be a bustling week for Coinbase. News surfaced on Monday that Coinbase had initiated a lawsuit against the Securities and Exchange Commission (SEC), aiming for a court order to compel the regulatory body to outline clear guidelines for the cryptocurrency sector.
In the lawsuit outlined in their court submission on March 11, Coinbase contested the SEC’s absence of formal rulemaking for the crypto industry, arguing that the agency’s actions impede the sector’s progress and transparency.
SEC’s Absence of Digital Asset Rulemaking
The filing criticized the SEC for its passive approach to crypto regulation, contending that the lack of specific rules has created a regulatory ambiguity within the sector.
“Over the years, the SEC conveyed limited statutory authority over digital assets, and the extent of its jurisdiction remained unclear,” noted Coinbase. “As a result, market participants heavily invested in what has now become a two-trillion-dollar industry, structuring their businesses in accordance with regulatory frameworks established by relevant agencies.”
