Amid trouble with the U.S. Securities and Exchange Commission (SEC), global cryptocurrency exchange Coinbase reveals its plan to raise $ 1.5 billion by selling bonds.
Coinbase plans to issue bonds worth $ 1.5 billion
Coinbase Global Inc. (Nasdaq: COIN) announced Monday that it “had a total face value of $ 1.5 billion, subject to market conditions and other factors.
The company stated that the notes “are fully and unconditionally guaranteed by Coinbase Inc.” and “The interest rate, repayment policy and other terms of each banknote series will be determined through negotiations between Coinbase and the initial buyers.” The announcement details:
Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may include ongoing investments in product development as well as potential investments or acquisitions in other companies, products or technologies that Coinbase may identify in the future.
The global crypto exchange further stated that “neither the bonds nor the associated guarantee have been or will be registered under the Securities Act or the securities laws of any other jurisdiction.”
That announcement followed Coinbase’s announcement that it had received a Wells notice from the SEC regarding its loan product. Regulators intend to sue the company if the product hits the market, but Coinbase said, “We don’t know why … we don’t have a statement from the SEC.”
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