Cryptocurrency exchange Coinbase, the largest in the US, is planning to raise $1.5bn in debt capital through the sale of bonds.
The bonds will be due for repayment in 2028 and 2031, and will be put towards product development and potential acquisitions, though the company did not say if it was actively considering any such deals.
The interest rates and other conditions of the bonds will be negotiated between the company and the purchasers.
In a statement, the company said the funding “represents an opportunity to bolster our already-strong balance sheet with low-cost capital.“
It went on: “Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may include continued investments in product development, as well as potential investments in or acquisitions of other companies, products, or technologies that Coinbase may identify in the future.”
This week, Coinbase announced it was being threatened with legal action by the US Securities and Exchange Commission (SEC) over its plans to launch a digital asset lending service, called Lend. The SEC has already served a number of subpoenas to the company over the issue.
The service will allow users to earn interest on their crypto and other digital assets on the platform by lending them to other users, underwritten by Coinbase itself. The SEC says that this qualifies as an “investment contract”, and therefore a security under US federal law. Coinbase disagrees.
Many cryptocurrency exchanges have faced increasing regulatory scrutiny in recent months, notably industry giant Binance.
In April, Coinbase became the first crypto exchange in the US to go public ...
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