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Coinbase Global (NASDAQ:COIN) stock fell 1% on Tuesday morning after the cryptocurrency exchange announced plans to offer $2 billion in convertible senior notes to qualified institutional buyers.
The company intends to offer $1 billion in notes due 2029 and another $1 billion due 2032, with an option for initial purchasers to buy an additional $150 million of each series. The notes will be senior, unsecured obligations with interest payable semi-annually, and will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination at the company’s discretion.
In connection with the offering, Coinbase plans to enter into capped call transactions to reduce potential dilution to its Class A common stock upon conversion of the notes. The company will use part of the proceeds to fund these transactions, with the remainder allocated for general corporate purposes including working capital, capital expenditures, investments, acquisitions, and potential repurchases of existing debt securities.
This article has been published on investing.com via Yahoo News.
