Coinbase, the largest cryptocurrency exchange in the United States, announced on September 13, its plans to raise $ 1.5 billion through a debt offer.
The Nasdaq-listed crypto exchange intends to dedicate the raised capital to further development of the company’s balance sheet, for general business purposes and potential investments and acquisitions of companies, products or technologies, Coinbase explained. The announcement states that the closing of the offering is subject to market conditions and other circumstances.
The new fundraiser specifically aims to offer a total of $ 1.5 billion in senior bonds of the company maturing in 2028 and 2031, fully guaranteed by Coinbase Inc., a wholly owned subsidiary of Coinbase acting as a holding company. The interest rate, redemption arrangements and other terms of collection are subject to negotiation between the company and the initial purchasers.
Coinbase has indicated that the bonds and related collateral will only be offered and sold through a private offering prospectus to persons “reasonably deemed qualified institutional buyers” under local and non-US security regulations.
“Neither the notes nor the related collateral have been, or will be, registered under the Securities Act or any other jurisdiction’s securities regulations, and if not registered in this way may not be offered or sold in the United States, except under to an applicable exemption from these registration requirements, ”Coinbase added.
Related: The SEC threat against Coinbase raises regulatory and privacy concerns
The news emerges as Coinbase continues to attract the attention of regulators. Last week, the US Securities and Exchange Commission (SEC) threatened to sue the exchange over its crypto lending product, which has not yet been launched. Coinbase CEO Brian Armstrong pointed out that several other crypto companies on the market currently provide similar lending services to their customers.
With over $ 5.6 billion in daily trading volume, Coinbase is one of the largest cryptocurrency exchanges in the world. In the past, the company had planned to raise $ 1.25 billion through a private bond issue in May 2021, shortly after theI arrive on the stock exchange with a direct listing on the Nasdaq in mid-April.
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