Coinbase Plans to Raise $1.5 Billion Through Senior Notes Offering

The California-based crypto trading platform Coinbase Global, Inc. (Coinbase) announced yesterday that it was intended to offer, subject to market conditions and other factors, $1.5 billion aggregate principal amount of its Senior Notes due 2028 and 2031 in a private offering.

According to the announcement, the fundraising will be fully and unconditionally guaranteed by the crypto exchange’s wholly owned subsidiary Coinbase, Inc. The interest rate, redemption provisions, and other terms of each series of notes will be determined by negotiations between Coinbase and the initial purchasers.

The financing indicates an opportunity to bolster Coinbase’s already-strong balance sheet with low-cost capital. The platform plans to use the net proceeds from the offering for general corporate purposes, which may include continued investments in product development, as well as potential investments in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future.

The notes and the related guarantee will only be offered and sold by means of a private offering memorandum to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Neither the notes nor the related guarantee have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from such registration requirements.

Last month, Fazzaco reported that Coinbase appointed Kate Rouch​, former Facebook Global Head of Brand and Product, as the company’s new Chief Marketing Officer.