Coinbase plans to raise $1 billion in bond issue amid bullish trend

This strategy is seen as a smart move to capitalize on the positive momentum in the crypto market and safeguard shareholder interests.

Coinbase announced plans to launch a $1 billion bond offering to raise funds to support its growth and expansion, according to a March 12 filing.

The bonds are identified as unsecured convertible senior notes and are scheduled to mature in 2030, at which time investors will have the option to convert their bond holdings into Coinbase shares or cash. The offering also includes a 30-day option to purchase an additional $150 million principal amount of notes to satisfy oversubscription.

This strategy is seen as a smart move to capitalize on the positive momentum in the crypto market and protect shareholder value.

Coinbase has also introduced “negotiated capped call transactions” through bond issuances, designed to mitigate the dilutive impact on shareholders when debt is converted into equity.

Proceeds from the bond issuance will be used for a variety of purposes, such as repaying debt, funding bullish trades, and potential acquisitions, underscoring Coinbase’s ambitions for growth and integration in the crypto economy.

Coinbase shares soar as crypto market bullish

The news comes after a sharp rise in the value of Bitcoin, which recently hit an all-time high, surpassing the $73,000 mark.

The bullish trend in the cryptocurrency market has matched Coinbase's 48% rise this year to December 2021 levels, a rally that prompted some Wall Street analysts to revise their previously cautious views on the company's shares.

Thanks to the sector's strong performance, financial giants like Raymond James and Goldman Sachs have switched from bearish to a more optimistic view.

Coinbase previously offered $1.25 billion worth of senior convertible notes in May 2021, but the offering came after a market crash related to the collapse of the TerraUSD stablecoin. The company plans to periodically repurchase its outstanding debt.

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