In Brief:
- Coinbase intends to offer $1.5 million in the form of the Company Senior Note offering.
- Senior note contract offerings are due in 2028 and 2031
- The offering would be used towards general corporate purposes and product development.
Coinbase, one of the top cryptocurrency exchanges, intends its private debt offering in the form of the company’s Senior Notes offering worth $1.5 million.
According to the announcement, the notes will be fully and unconditionally guaranteed by Coinbase Inc. The funds raised from the offerings would be used for general corporate purposes and potential mergers and acquisitions.
Coinbase private senior notes offering contracts are due in 2028 and 2031. The interest rate, redemption provisions, and other raised terms are subject to negotiations between the firm and initial purchasers. The crypto exchange is looking to use the capital raised to the future growth of the company’s balance sheet with low-cost capital.
Coinbase intends to “use the net proceeds from the offering for general corporate purposes, which may include continued investments in product development, as well as a potential investment in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future.” The closing of the offering is subject to market and other conditions.
The notes and related guarantees will only be available to “persons reasonably believed to be qualified institutional buyers” under the Securities Act of 1933.
“Neither the notes nor the related guarantee have been or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from such registration requirements,” the exchange added.
The news follows the critical time of Coinbase. It is facing problems from the U.S. SEC threatening to sue the exchange over its Lend features. Last week, Coinbase CEO Brian Armstrong responded to the threat, calling the SEC’s behaviour “Sketchy.”
