HomeNewsCoinbase's $1B Bond Sale Strategy: Following Michael Saylor's Bitcoin Playbook

Coinbase’s $1B Bond Sale Strategy: Following Michael Saylor’s Bitcoin Playbook

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  • The financing approach mirrors that of MicroStrategy, which similarly employed convertible bonds to secure $800 million worth of Bitcoin.
  • Coinbase is confronting the SEC through legal action, seeking definitive regulations for the cryptocurrency industry and its oversight.

Cryptocurrency exchange platform Coinbase Global, Inc. has announced a private offering of $1 billion in senior convertible notes maturing in 2030.

Coinbase has indicated that this exclusive offering will be accessible solely to investors recognized as “qualified institutional buyers.” Notes represent a type of investment that companies issue as a way to generate capital from investors. Issuing bonds is a common approach for businesses in need of funding.

“Coinbase also plans to grant initial purchasers of the notes a 30-day option to purchase up to an additional $150.0 million in principal amount of the notes, solely to cover over-allotments. The notes will be senior unsecured obligations of Coinbase, will accrue interest payable semi-annually and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted,” the firm said in a press release.

Following MicroStrategy’s lead

MicroStrategy has utilised a comparable strategy to secure funding, as highlighted in our earlier coverage on ETHNews. The company verified on March 8 that it had finalised its offering of 0.625% senior convertible notes maturing in 2030, as previously revealed. The total principal sum of the notes issued reached $800 million.

Furthermore, MicroStrategy disclosed an additional substantial acquisition of Bitcoin, investing $800 million at an average rate of $68,377 for each Bitcoin. This latest investment was financed through the proceeds obtained from the $700 million offering of convertible notes. Presently, MicroStrategy is in possession of 205,000 Bitcoin (BTC).

Coinbase files lawsuit against SEC

Coinbase has experienced a hectic week. It came to light on Monday that the company initiated legal action against the Securities and Exchange Commission (SEC), requesting a judicial order to compel the regulatory body to define explicit regulations for the cryptocurrency industry.

Within the legal documentation submitted to the court on March 11, Coinbase contested the SEC’s absence of specific regulatory measures for the cryptocurrency market, accusing the regulatory entity of obstructing the progress and transparency of the sector.

The submission condemned the SEC for its inactive approach towards cryptocurrency regulation, contending that the lack of defined regulations has resulted in the industry operating within a regulatory ambiguity.


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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628