Cryptocurrency exchange Coinbase has announced it plans to offer $1.25 billion of convertible senior notes due 2026 in a private offering to institutional buyers. According to an announcement, the exchange expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $187.5 million principal amount of notes.
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"The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semi-annually in arrears and will mature on June 1, 2026, unless earlier repurchased, redeemed or converted," Coinbase explained.
The exchange says the notes will be convertible into cash. However, the interest rate will be determined upon pricing of the offering, the exchange added. Meanwhile, Coinbase shares are down almost 4%. As of press time, COIN as trading at $248,24, down 24% since its debut on April 14.
As iHodl earlier reported, Intercontinental Exchange (ICE), operator of the New York Stock Exchange (NYSE) and the platform Bakkt, closed its stake in Coinbase. According to the company's first-quarter earnings statement, the $1.23 billion it earned from the sale of the shares will be included in ICE's earnings for the next period.
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