Cryptocurrency exchange Coinbase is considering raising $1 billion through the issuance of senior convertible notes due in 2030.
At maturity, the notes will be convertible into cash, Coinbase Class A common stock, or a combination of both.
Coinbase's convertible notes can only be purchased by institutional investors in a private placement, Coincu said.
Once the service launches, the US cryptocurrency exchange intends to give initial note purchasers a 30-day option to purchase an additional $150 million in principal, which could increase the total value of the offering.
Coinbase intends to use the proceeds from the convertible senior notes for general corporate purposes, including the repayment or redemption of existing indebtedness.
Many experts believe that Coinbase is looking to leverage MicroStrategy's strategy to grow its business.
MicroStrategy, known for its commitment to Bitcoin hoarding, funds its acquisitions primarily with convertible debt proceeds and excess cash. MicroStrategy also offered initial purchasers the opportunity to purchase an additional $100 million in notes within 13 days.
Coinbase has been on a tear lately. The exchange's stock has risen more than 40% in the past year, largely due to the rise in cryptocurrency prices. The company's market capitalization exceeds $61 billion.
It is worth noting that Coinbase is ready to take advantage of any opportunity for its development, as the cryptocurrency market is on the cusp of bullish growth, which is due to many factors.
Read also: Biden's plan for 2025 includes a 30% tax on miners
