Cryptocurrency exchange Coinbase said in a press release it is planning to raise $1.5 billion via bond sale. While the exchange noted that the deal is subject to market conditions and other factors it plans to offer senior notes due 2028 and 2031. However, the interest rate, redemption provisions, and other terms of each series of notes remain unknown.
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Coinbase says the funding will help it to bolster balance sheet with "low-cost capital." Particularly, the exchange wants to use capital for general corporate purposes, including investments in product development and acquisitions of other companies.
The Nasdaq-listed cryptocurrency exchange announced its bond sale shortly after the US Securities and Exchange Commission (SEC) warned it might file lawsuits against the exchange over launching the lending service called Coinbase Lend.
According to Coinbase CEO, Brian Armstrong, representatives of the exchange contacted the SEC to notify the regulator of the launch of the new product. The agency in turn said it had classified the lending service's loans as unregistered securities and threatened to sue the exchange if it launches the new product.
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