Coinbase Global, the largest bitcoin (BTC) and cryptocurrency exchange in the United States, announced this Monday, September 13, the start of raising USD 1.5 billion, through a private offering of senior notes from debt, maturing in 2028 and 2031. Coinbase indicates that it will use the capital raised in the development of products, in addition to investments in other companies, in products and in technologies.
A senior or preferred debt, It is one whose main characteristic is that it is placed ahead of junior debt and ordinary shares in the priority of credits. Therefore, is the debt that must be repaid before if the issuing company declares bankruptcy .
«The interest rate, the provisions repayment terms and other terms of each series of notes will be determined through negotiations between Coinbase and the initial buyers, ”reads a press release from the exchange.
It is not the first time that Coinbase has undertaken the collection of capital through the issuance of debt. A month after going public, the exchange announced that it would issue private bonds destined for qualified investors for USD 1.25 billion, maturing in 2026, as reported by CriptoNoticias.
As shown in the chart, the Coinbase (COIN) stock on NASDAQ is priced at $ 242.62 at the moment of the writing of this article. This represents a 26% deterioration compared to the closing price of April 14 of this year, its initial day on the stock market.
The SEC has its sights set on Coinbase
According to CoinMarketCap, Coinbase is the world’s third largest cryptocurrency exchange by daily volume traded, behind Binance and Huobi Global, and the first in the United States.
The fall in its share price is not the only problem that faces the exchange. In recent days, he has had some run-ins with financial regulators. Coinbase reported on September 8 that the United States Securities and Exchange Commission (SEC) would intend to file a lawsuit against it for a new product called Lend, which facilitates the handling of loans with stablecoins, as reported in this medium.