Coinbase plans to raise $1.5 billion via debt offering
Nasdaq-listed major cryptocurrencies exchange Coinbase announced on the 13th that it plans to raise $ 1.5 billion in bond sales in an effort to improve credibility.
The proposed Private Debt Offering is said to be offered in senior notes that will mature in 2026 and 2031.
According to the press release issued yesterday, the company plans to utilize the funds for general corporate purposes such as product development, “potential investments in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future”.
Regarding the terms and conditions of the bond sale, the company noted:
“The notes and the related guarantee will only be offered and sold by means of a private offering memorandum to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.”
The move to offer bond sale came just after Coinbase released a statement that said the US SEC has threatened to sue the exchange if it went ahead with its new ‘LEND program that allows users to earn interest by lending their stablecoins.
Previously in May, the company had announced plans to issue private placement bonds worth $1.25 billion. However, the company did not implement the scheme at that time.
The post Coinbase plans to raise $1.5 billion via debt offering appeared first on Our Bitcoin News.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow
