Coinbase Global Inc is the international arm for the US-listed crypto exchange. It plans to raise $1.5 million through debt instruments. According to Monday’s press release the proceeds will be used for product development and possible mergers and acquisitions.
“This capital raising represents an opportunity to strengthen our already strong balance sheet using low-cost capital,” Coinbase stated.
“Coinbase intends use the net proceeds of the offering for general corporate purposes. This may include continued investments into product development as well as possible investments in or acquisitions by other companies, products, or technologies that Coinbase may discover in the future.”
Senior Notes due 2028 and 2031 will be the debt instruments. The exchange will meet with the initial purchaser to determine the interest rates and redemption provisions, as well as other terms.
For Non-US Buyers
Coinbase also clarified that instruments will be only sold to institutional buyers who are qualified for private offerings. These notes have not been registered with the United States Financial Markets Regulator, so only non-US participants can purchase them.
The exchange stated that the notes would be guaranteed unconditionally by Coinbase, Inc., which is a wholly-owned subsidiary.
Coinbase’s drive to raise more funds was announced only one week after its CEO Brian Armstrong disclosed that the US Securities and Exchange Commission may sue the exchange for its crypto yield program.
With its eagerly awaited direct listing on Nasdaq, the crypto exchange was made public in April. It is not performing well in the market, as shares trade at a 34% discount to their debut price.
After the public listing, the debt funding effort will be the second. The exchange offered $1.25 Billion in senior notes due 2026 last May to fund its general corporate purposes. Investors have brought a class action lawsuit against the company for failing to disclose its financial status.