Amid trouble with the U.S. Securities and Exchange Commission (SEC), global cryptocurrency exchange Coinbase unveils its plan to raise $1.5 billion by selling bonds.
Coinbase Plans to Issue $1.5 Billion in Bonds
Coinbase Global Inc. (Nasdaq: COIN) announced Monday “its intention 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.”
The company explained that the notes “will be fully and unconditionally guaranteed by Coinbase Inc.” and “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 announcement details:
Coinbase intends 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 global crypto exchange further declared that “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.”
This announcement followed Coinbase revealing that it had received a Wells Notice from the SEC regarding its lending product. The regulator intends to sue the company if the product is launched but Coinbase said: “We don’t know why … We got no explanation from the SEC.”
What do you think about Coinbase issuing bonds to raise $1.5 billion? Let us know in the comments section below.
Source: Bitcoin.com
