Coinbase to Raise $2 Billion Through Convertible Bond Offering

Coinbase to Raise $2 Billion Through Convertible Bond Offering

Coinbase (NASDAQ: COIN) has announced plans to raise $2 billion by issuing convertible senior notes in a private placement, aimed at qualified institutional investors. The move impacted market sentiment — on the morning of August 5, the company's stock price fell by over 3%, trading around $307, continuing a recent decline despite strong quarterly earnings.

The offering will be split into two separate tranches, each worth $1 billion, with maturities set for 2029 and 2032, respectively.

Coinbase views the fundraising effort as a strategic move to build a financial buffer, allowing the company to capitalize on future market opportunities. These may include acquisitions, product expansion, or technology investments. Earlier this year, the exchange acquired the
blockchain-based ad tech startup Spindl, along with its full team.

In addition to strategic investments, proceeds will also be used to strengthen working capital, conduct share buybacks, or refinance existing obligations. Part of the funds will go toward capped call transactions, aimed at minimizing shareholder dilution in the event of bond conversion.