Coinbase COIN Stock Extends Fall to 20% After $2 Billion Notes Offering
The post Coinbase COIN Stock Extends Fall to 20% After $2 Billion Notes Offering appeared on BitcoinEthereumNews.com. Key Insights: Coinbase announced a plan to raise $2 billion from selling convertible senior notes. This could help pay off debt and boost the company’s growth after a recent drop in revenue. COIN stock has dropped 20% in a week, falling over 5% to almost $301 on August 5. Crypto exchange Coinbase (NASDAQ: COIN) on Tuesday said it plans to raise $2 billion from selling convertible notes. The firm joined other crypto firms using the same strategy to raise millions from high-net-worth investors, venture capital firms, and institutions amid a favorable environment. However, COIN stock tumbled more than 5% on Tuesday to increase the weekly fall to 20%. This has raised concerns among investors after revenue missed expectations in Q2. Coinbase Announces to Raise $2 Billion from Convertible Notes Offering In a press release on August 5, Coinbase announced a plan to offer $2 billion in convertible senior notes to qualified institutional buyers. This comprised of equal amount of $1 billion in convertible senior notes maturing in 2029 and 2032. The company will also enable early purchasers to buy an additional $150 million of the 2029 notes and $150 million of the 2032 notes. This is for the settlement of notes within 13 days from the first issue date. The crypto exchange claimed to enter into privately negotiated capped calls to reduce Coinbase’s Class A common stock’s potential dilution and offset cash payments, which will protect current stockholders. Will Coinbase Use Proceeds to Buy More Bitcoin? Coinbase holds a total of 11,776 BTC in its corporate treasury. While the firm hasn’t mentioned any intention to buy Bitcoin or other crypto assets, speculation was sparked on the possibility of it happening in the crypto community. The firm confirmed to use the proceeds’ portion to meet capped call transactions cost and pay…
The post Coinbase COIN Stock Extends Fall to 20% After $2 Billion Notes Offering appeared on BitcoinEthereumNews.com.
Key Insights: Coinbase announced a plan to raise $2 billion from selling convertible senior notes. This could help pay off debt and boost the company’s growth after a recent drop in revenue. COIN stock has dropped 20% in a week, falling over 5% to almost $301 on August 5. Crypto exchange Coinbase (NASDAQ: COIN) on Tuesday said it plans to raise $2 billion from selling convertible notes. The firm joined other crypto firms using the same strategy to raise millions from high-net-worth investors, venture capital firms, and institutions amid a favorable environment. However, COIN stock tumbled more than 5% on Tuesday to increase the weekly fall to 20%. This has raised concerns among investors after revenue missed expectations in Q2. Coinbase Announces to Raise $2 Billion from Convertible Notes Offering In a press release on August 5, Coinbase announced a plan to offer $2 billion in convertible senior notes to qualified institutional buyers. This comprised of equal amount of $1 billion in convertible senior notes maturing in 2029 and 2032. The company will also enable early purchasers to buy an additional $150 million of the 2029 notes and $150 million of the 2032 notes. This is for the settlement of notes within 13 days from the first issue date. The crypto exchange claimed to enter into privately negotiated capped calls to reduce Coinbase’s Class A common stock’s potential dilution and offset cash payments, which will protect current stockholders. Will Coinbase Use Proceeds to Buy More Bitcoin? Coinbase holds a total of 11,776 BTC in its corporate treasury. While the firm hasn’t mentioned any intention to buy Bitcoin or other crypto assets, speculation was sparked on the possibility of it happening in the crypto community. The firm confirmed to use the proceeds’ portion to meet capped call transactions cost and pay…
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