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.
Shares of Coinbase fell as much as 3.6% after regular trading hours. The stock has jumped 47% this year.
