Coinbase Global Inc. said Monday it plans to sell $1.25 billion of convertible debt, the same day its stock closed below its $250 reference price for the first time since the crypto platform listed on the Nasdaq exchange in mid-April.
Coinbase whose users primarily deal in bitcoin and Ether on the Ethereum protocol,
last week reported strong first-quarter results, in line with its preliminary release before it went public. The platform is now looking to
sell bonds due in 2026, which can convert to Class A common stock, if the stock hits a set strike price.
“This capital raise represents an opportunity to bolster Coinbase’s already strong balance sheet with low-cost capital that maintains operating freedom and minimizes dilution for Coinbase’s stockholders,” the company said in a statement. Proceeds from the debt deal were earmarked for general corporate purposes. (MW)