Popular United States cryptocurrency exchange Coinbase is reportedly planning to raise $1.5 billion through a debt offering. This made the crypto company official known.
Continue to grow your balance
The cryptocurrency exchange, which is also listed on the Nasdaq exchange, plans to use these funds to further grow the company’s balance sheet for general corporate purposes, as well as potential investments and acquisitions of other companies, products or technology. The closing of the offering is subject to market and other conditions, the company further noted.
The company reportedly wants to use debt offerings to raise the $1.5 billion, which will mature between 2028 and 2031. They will reportedly be fully guaranteed by Coinbase, Inc., a wholly owned subsidiary of Coinbase. The interest rate, repayment terms and other terms of the increase are subject to negotiation between the company and the initial purchasers.
Qualified Institutional Buyers
Further, Coinbase noted that the debt offering papers and associated guarantee would only be offered and sold through a private offering memorandum to persons “reasonably believed to be qualified institutional buyers” under local securities laws and outside of the United States. Coinbase added the following:
“Neither the bonds nor the related guarantee have been or will be registered under the Securities Act or the securities laws of any other jurisdiction and, unless so registered, may not be offered or sold in the United States except under from any applicable exemption from such registration requirements.”
Coinbase facilitates more than $5.6 billion in trading volumes every day, making it one of the world’s largest cryptocurrency exchanges. The crypto firm previously planned to raise $1.25 billion through a private debt offering in May 2021, shortly after it went public in mid-April with a direct listing on Nasdaq. The company appears to have major expansion plans.