• Coinbase will raise $1.5 billion in a senior note offering to fund product development

  • The largest cryptocurrency exchange in the United States will raise $1.5 billion in a private offering to strengthen its balance sheet.

    Coinbase announced today that it plans to hold a $1.5 billion private offering of senior notes. The funds will be used for product development, acquisitions, and hiring new employees, according to the company.

    According to a press release dated September 13th, the largest US-based exchange will conduct a private offering of $1.5 billion in aggregate principal amount of its senior notes due 2028 and 2031.

    The company has stated that it will “fully and unconditionally” guarantee the notes. Parties interested in purchasing the notes will be able to negotiate the interest rate, redemption provisions, and “other terms of each series.”

    Brian Armstrong’s exchange will use the funds raised to strengthen the company’s “already-strong balance sheet with low-cost capital.” Furthermore, the firm intends to use the net proceeds for general purposes such as “continued investments in product development.”

    Coinbase, which recently acquired data aggregator Skew, wants to keep this trend going, and some of the funds may be directed in that direction.

    The exchange, which was founded in 2012, is one of the oldest and largest players in the cryptocurrency market today.

    It reached a significant milestone in April of this year when its shares were listed for trading on Nasdaq via a direct listing.
    The stocks opened at $380 at the time, but have since declined to around $250.

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