Coinbase Announces Proposed Private Offering Of $1.25B Convertible Senior Notes – Converted Organics (COIN)

Coinbase announced its plans to offer a $1.25 billion aggregate principal amount of Convertible Senior Notes due 2026 in a private offering to expand business operations.

What Happened: The notes will be offered to persons reasonably believed to be “institutional buyers” under Rule 144A of the Securities Act of 1933.

Coinbase said it would also grant the initial purchasers of the notes a 30-day option to purchase up to an additional $187.5 million principal amount of notes solely to cover over-allotments.

The net proceeds from the offering will reportedly be used for general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions. 

Coinbase said that it might also use a portion of the net proceeds to make investments in and acquisitions of other companies, products, or technologies that it identifies in the future.

See also: Coinbase’s Stock Could Fall To $100 Or Lower, Says Research Firm

Coinbase shares have fallen over 14% in the past week, as cryptocurrencies like Bitcoin and Ethereum too reported losses and increased volatility. However, the company declared that a declining stock price is unlikely to deter them in a letter to shareholders last week.

“We are a long-term focused company, not a short-term one,” stated the crypto exchange, adding that they will “continue to make bold bets that might not appear obvious to the world.”

Price Action: Coinbase shares dropped 3.92% during after-hours trading following the news. It was trading at $242.36, down 2.37%, at press time.

Image: TechCrunch on Wikimedia Commons

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