Coinbase intends to offer $ 1.5 billion of senior notes in private offering

Cryptocurrency exchange Coinbase today announced plans to offer $ 1.5 billion of its senior notes, maturing in 2028 and 2031, in a private offering. notes will be backed by Coinbase, Inc. Senior notes are a type of debt-based collateral, similar to a bond, but are repaid earlier in the event of bankruptcy.

” capital increase represents an opportunity to strengthen our already strong balance sheet with low-cost capital,” Coinbase said in a prepared speech.

“Coinbase intends to use the net proceeds from the offering for general business purposes, which may include ongoing investments in product development, as well as potential investments or acquisitions of other companies, products, or technologies that Coinbase may identify in the future. », additional exchange.

notes themselves will be available only to “persons reasonably believed to be qualified institutional purchasers” under the United States Securities Act of 1933.

This isn’t the first time the exchange has tried to raise money.

Earlier this year, Coinbase announced plans to raise $ 1.25 billion through the sale of convertible notes, a type of bond that allows the buyer to earn interest or convert holdings into shares. move, announced in May, came as a surprise, as the company was positive for cash flow and had only recently been listed on the NASDAQ.

This announcement follows a controversial period for Coinbase CEO Brian Armstrong, who lashed out at the Securities and Exchange Commission last week.

Coinbase vs SEC

second threatened to sue Coinbase on its Lend product, which would pay stablecoin owners 4% interest on their stakes.

Coinbase Chief Legal Officer Paul Grewal announced the SEC’s decision last week. He suggested that the SEC’s decision took the exchange by surprise, a sentiment Armstrong echoed on his personal account.

Read also all-in-one app for your daily life with cryptocurrencies

“[ SEC] responded by telling us that this loan feature is collateral. Ok, it seems strange, how can the loan be collateral? Armstrong said in the middle of a tirade published on September 8.

CEO’s tweets have been widely criticized on social media, with more viewers. I exchange the definition of title, available on the first page site of the Securities Act of 1933.

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