- Coinbase plans a $2 billion convertible bond offering split into 2029 and 2032 tranches.
- Bonds convertible into shares or cash; investors can buy an extra $300M in notes.
- Following Q2 revenue decline, Coinbase shares dropped 15%, but analysts remain optimistic.
Cryptocurrency exchange Coinbase has announced plans to raise $2 billion through a private placement of convertible bonds. According to the company, the issue will be divided into two tranches, maturing in 2029 and 2032.
Each tranche will have a volume of $1 billion, the press release states. Investors will also have the right to purchase an additional $300 million in notes across both tranches. Coinbase clarified that the bonds will be offered to institutional investors under Rule 144A, allowing a private placement exempt from SEC registration.
The senior unsecured notes will be convertible into Class A shares, cash, or both, at Coinbase's discretion. The company intends to pay interest on these notes semi-annually.
Coinbase also plans to enter into call option transactions to reduce potential share dilution from conversions, which they say will offset cash payments exceeding the principal amount of the notes.
A portion of the funds raised will cover the costs of these options, with the remainder used for corporate purposes. These include working capital, capital expenditures, and repurchasing or redeeming other debt securities.
The bond offering came shortly after Coinbase's Q2 2025 earnings report showed a decline in revenue and an increase in expenses. On this news, shares of Coinbase (ticker: COIN) fell 18%, according to Yahoo Finance.
At the time of writing, Coinbase’s shares traded at $302.48, down 4.9% for the day, with a market capitalization of $79.2 billion.
Despite recent declines, Benchmark analysts maintained a "buy" recommendation on Coinbase, citing long-term growth catalysts. Meanwhile, Coinbase continued to increase its Bitcoin reserves, which reached 11,776 BTC in Q2.
