In an 8-K filed with the Securities and Exchange Commission, Coinbase (NASDAQ:COIN) indicated its intent to raise up to $1 billion in funding in a convertible debt offering.
Coinbase stated the convertible senior notes are due in 2030. Coinbase also intends to grant the initial purchasers of the Notes a 30-day option to purchase up to an additional $150.0 million principal amount of Notes, solely to cover over-allotments.
In connection with the pricing of the Notes, Coinbase expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Notes or their respective affiliates and/or other financial institutions.
In a press release, Coinbase said the funds from the offering will repay at maturity, or repurchase or redeem prior to maturity, from time to time and subject to market conditions, its outstanding 0.50% Convertible Senior Notes due 2026, 3.375% Senior Notes due 2028, and 3.625% Senior Notes due 2031. The capital infusion will also be used for other general corporate purposes.
Yesterday, Coinbase founder and CEO Brian Armstrong filed a Form 144 with the SEC indicating his intent to sell an additional 23,075 shares in Coinbase. At that time, the shares were valued at around $5.8 million. Armstrong has sold some of his shares in Coinbase in the past two years.
Coinbase shares dipped by over 3% in after-hours trading. However, in the past couple of months, shares have risen dramatically, largely due to rising sentiment on Bitcoin and the potential for other ETF approvals.
Last February, Coinbase shares responded positively to Q4 earnings and expectations for the coming quarter.
