Coinbase to raise $1.25 billion as stock slides

The Nasdaq-listed Bitcoin exchange Coinbaseannounced a private placement of convertible notes worth $1.25 billion due 2026.

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Qualified institutional investors will be able to participate in buying the debt securities. The first tranche will offer up to $187.5 million of the notes for purchase within 30 days.

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The notes are unsecured senior obligations of Coinbase. Interest will be paid semi-annually.

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The notes will mature on June 1, 2026, unless Coinbase redeems or converts them earlier in accordance with their terms.

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The securities are convertible, at Coinbase’s option, into cash, Coinbase Class A ordinary shares, or a combination thereof.

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On Monday, May 17, Coinbase stock (ticker: COIN) fell below the reference price ($250) for the first time. The decline came as the broader cryptocurrency market corrected — Bitcoin briefly touched $42,185.

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On April 14, the direct listing of Coinbase shares on Nasdaq took place. The opening price was $381. During the first session, the company’s market capitalization exceeded $85 billion.

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Earlier this month, Deutsche Börse announced the delisting of COIN shares due to an error in the LEI code, after which the securities fell 12%.

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