A statement was made by Coinbase Global Inc., the largest cryptocurrency exchange in the United States,
stating that it intends to offer convertible senior notes worth one billion dollars in order to repay existing debt and for general corporate objectives.
According to a statement released by Coinbase on Tuesday, the corporate notes that will mature in the year 2030 will be sold to institutional investors through a private sale
Additionally, Coinbase anticipates that it will give a 30-day option that will permit the acquisition of up to an extra $150 million of the assets in order to compensate for insufficient allocations.
Depending on the decision made by the firm, the notes will be convertible into either cash or shares of Coinbase's Class A common stock, or a mix of the two.
To repay its existing 0.50% convertible senior notes due 2026, 3.375% senior notes due 2028, and 3.625% senior notes due 2031, Coinbase plans to use the funds to either repurchase or redeem them prior to maturity, or to repay them at maturity.
Some of the uses that fall under the category of general corporate purposes include the payment of the cost of capped call transactions, as well as the investment of capital and working capital.
Coinbase's stock experienced a decline of approximately 3.6% beyond regular trading hours. This year, the stock has increased by 37 percent.
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