In the face of trouble with the U.S. Securities and Exchange Commission (SEC), the global cryptocurrency exchange Coinbase announced a plan to raise $1.5 billion through the sale of bonds.
Coinbase plans to issue $1.5 billion in bonds
Coinbase Global Inc. (Nasdaq: COIN) announced on Monday, “It intends to issue through private placement of US$1.5 billion in principal senior bonds due in 2028 and 2031 based on market conditions and other factors.”
The company explained that these notes “will be fully and unconditionally guaranteed by Coinbase Inc..” “The interest rate, redemption terms and other terms of each series of notes will be negotiated and determined by Coinbase and the initial purchaser.” Details of the announcement:
Coinbase intends to use the net proceeds from the issuance for general corporate purposes, which may include continued investment in product development, as well as potential investments or acquisitions in other companies, products or technologies that Coinbase may determine in the future.
Global cryptocurrency exchanges further stated that “neither the bills or related guarantees have been or will not be registered under the Securities Act or the securities laws of any other jurisdiction.”
The announcement was made after Coinbase revealed that it had received a Wells notice from the US Securities and Exchange Commission regarding its loan products. If the product is launched, the regulator intends to sue the company, but Coinbase said: “We don’t know why…we didn’t get an explanation from the SEC.”
What do you think of Coinbase issuing bonds to raise $1.5 billion? Let us know in the comments section below.
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