Crypto exchange Coinbase announces $1.25 billion private debt offering

U.S. crypto exchange company Coinbase said Monday that it plans to conduct a $1.25 billion private debt offering.

“Coinbase Global, Inc. (“Coinbase”) (Nasdaq: COIN) today announced its intention to offer, subject to market conditions and other factors, $1.25 billion aggregate principal amount of Convertible Senior Notes due 2026 (the “notes”) in a private offering (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”),” the firm said in a statement, adding:

“Coinbase also expects to 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 notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on June 1, 2026, unless earlier repurchased, redeemed or converted. The notes will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination thereof, at Coinbase’s election.”

The move comes just over a month after Coinbase’s stock began trading on Nasdaq via a direct listing. Last week, Coinbase said it brought in $1.8 billion in total revenue for the first quarter of 2021.

$COIN closed at $248.24 at the end of Monday’s trade session, according to Nasdaq data.