Coinbase Intends to Offer $1.5 Billion Senior Notes

Coinbase Global, Inc. recently announced its intent to offer $1.5 billion Senior Notes. The Senior Notes that may be offered will be due in 2028 and 2031. According to the released information, the notes will be offered privately and will be “fully and unconditionally guaranteed by Coinbase, Inc.”

Details such as the interest rate, redemption provisions, and other terms will be presented during the negotiations between the initial buyers and Coinbase.

Also Coinbase stated that,

"This capital raise represents an opportunity to bolster our already strong balance sheet with low-cost capital."

With this, the firm wants to use the funds for general corporate purposes. This may include investments in product developments and acquisitions. Companies, products, or technologies that Coinbase may identify in the future may be acquired to improve the company’s ecosystem.

Senior Notes are a type of bond that gives investors a higher priority claim than Junior Notes. The announcement also says that the notes and related guarantees will only be sold to qualified institutional buyers.