Crypto exchange Coinbase to raise $1.5 billion through a debt offering

  • Coinbase wants to raise $1.5 billion via debt offering
  • The crypto exchange will use the funds to grow its balance sheet and expand its operations
  • Coinbase said the offering would only be available to private institutional investors

Publicly-listed crypto exchange Coinbase wants to raise funds to grow its balance sheet

Coinbase wants to raise $1.5 billion

Leading cryptocurrency exchange Coinbase has revealed earlier today that it wants to raise $1.4 billion via debt offering. The funds would allow the publicly-listed exchange to grow its balance sheet.

In a press release earlier today, Coinbase said, “Coinbase Global, Inc. (“Coinbase”) (Nasdaq: COIN) today announced its intention to offer, subject to market conditions and other factors, $1.5 billion aggregate principal amount of its Senior Notes due 2028 and 2031 (the “notes”) in a private offering (the “offering”). The notes will be fully and unconditionally guaranteed by Coinbase, Inc., a wholly-owned subsidiary of Coinbase.”

Coinbase added that it intends to use the funds for general corporate purposes, including continued investments in product development and potential investments in or acquisitions of other companies, products, or technologies that it may identify in the future.

The cryptocurrency exchange added that the notes and related guarantee would only be offered and sold via private offering memorandum to investors reasonably believed to be qualified institutional buyers.

SEC threatens to shut down Coinbase lending

This latest development comes just a few days after Coinbase CEO Brian Armstrong revealed that the SEC had threatened to shut down their Coinbase lending program. Armstrong had maintained that while the SEC terms the product a security, it is yet to provide any guidance in compliance with existing laws.

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