Some of the capital will be devoted to mergers and acquisitions in the sector, Coinbase said in a statement.
Coinbase, the largest US-based cryptocurrency exchange and one of the world’s leading cryptocurrency exchanges, has announced plans to raise additional funds for its expansion.
In a press release share On Monday, Coinbase Global said its goal was to raise $ 1.5 billion through a private debt offering of senior notes due in 2028 and 2031. According to Coinbase, the capital injection offers a excellent opportunity for the listed company to expand its war chest, adding to its impressive balance sheet through “low cost capital”.
According to the press release, the debt offering will be devoted to product development as well as future acquisitions and mergers.
The offer is only open to institutional buyers deemed qualified for the notes as required by the US Securities Act of 1933, Coinbase added. Investors are assured that the cryptocurrency company offers a full and unconditional guarantee to these ratings.
Coinbase’s plans for funding came to light just days after the exchange was told by the U.S. securities watchdog that it faced legal action if it launched its program. Lend. The company maintains that the SEC threat is surprising and unwarranted given that both sides have been “proactively” engaged for nearly six months regarding the program.
Despite this fact, the regulator did not provide the reasons for this lawsuit, forcing Coinbase to put on hold the unveiling of a plan that would allow customers to lend their crypto assets to earn interest.
Coinbase says Lend will not go live “Before at least October ”.
The exchange platform also issued a statement qualifying from “False” widespread allegations that its top executives sold shares due to the SEC’s lawsuit notice.
Elsewhere, regulatory uncertainty and the crash in the cryptocurrency market last week contributed to a downturn in the company’s stock price.
COIN, the share of the Nasdaq-listed company, fell nearly 2.5% on Monday as cryptocurrencies tumbled after information on a Litecoin-Walmart partnership turned out to be “False”. Over the past five days, the stock has fallen about 13% to leave prices around $ 242.
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