Coinbase Seeks $2 Billion in Funding
In a move aimed at bolstering its corporate resources, leading cryptocurrency exchange Coinbase is planning to raise $2 billion through a private offering of convertible senior notes.
The financing is projected to mature in either 2029 or 2032. Proceeds are earmarked for “general corporate purposes,” which the company anticipates may include working capital needs, capital expenditures, investments, or acquisitions of companies, products, or technologies.
This announcement comes amid reported challenges for the firm. Coinbase recently disclosed a 25% decline in revenue compared to the preceding financial quarter and saw its stock value significantly decrease following an earnings call, causing a subsequent drop of approximately 17%.
While noting these pressures, the company highlights its recent acquisition of crypto exchange Deribit as part of its strategic investments. Coinbase first raised $1 billion via convertible notes last year, execution of which aligns with the current funding’s potential use for expansion.
Coinbase went public in December 2021 and has experienced significant share price volatility, influenced by factors including broader market conditions, regulatory actions (notably a recent UK fine related to customer risk management), and security incidents last May.
