Coinbase Global, the largest US crypto exchange, to offer $1 billion in convertible notes

Coinbase Global Inc., the largest US cryptocurrency exchange, said it plans to offer $1 billion in convertible senior notes to repay existing debt and for general corporate purposes.

The notes maturing in 2030 will be sold through a private offering to institutional investors, Coinbase said in a statement Tuesday. Coinbase also expects to grant a 30-day option to allow the purchase of up to an additional $150 million of the securities to cover over-allotments. The notes will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination, at the company’s election.

Coinbase intends to use the proceeds to repay at maturity, or repurchase or redeem prior to maturity, its outstanding 0.50% convertible senior notes due 2026, 3.375% senior notes due 2028, and 3.625% senior notes due 2031. The general corporate purposes uses may include working capital and capital expenditures, and to pay the cost of the capped call transactions.