Coinbase, the world’s fifth largest crypto exchange by trade volume, has announced plans to raise $1.5bn (£1.08bn) through a debut bond offering.
The company said it will offer Senior Notes, a type of bond which carries a low degree of risk, which will be due in 2028 and 2031 as part of a private sale. The interest rate and terms of the notes will be determined by negotiations between Coinbase and the initial purchasers.
In a statement, Coinbase said the offering “represents an opportunity to bolster our already-strong balance sheet with low-cost capital.”
The company said it will use the net proceeds from the sale for corporate purposes, which may include continued investments in product development, as well as potential investments in or acquisitions of other companies, products, or technologies.
While the size of the offering has been earmarked as $1.5bn, Coinbase stressed this will be subject to market and other conditions. According to Bloomberg the sale will be managed by Goldman Sachs who could price the deal as soon as tomorrow.
The news comes after Coinbase reported record financials in the second quarter of 2021, with transaction revenue of $1.9bn and trade volume of $462bn, up 1,550 per cent year on year. The company ended the period with about $1.5 billion in non-current liabilities.
Coinbase, which listed on the Nasdaq exchange in April this year, has seen its share price tumble 2.31 per cent in the past 24 hours and drop 26.11 per cent since its initial listing.