What Happened: Coinbase raised the funding ceiling of its upcoming bond sale due to market interest, according to a Tuesday company announcement.
The company said the funds will be spent on product development and potential mergers and acquisitions.
As previously reported, the sale will be managed by Goldman Sachs Group Inc. (NYSE:GS). The bonds are expected to mature in seven and 10 years.
Coinbase is expected to need the capital to compete. At the end of the second quarter, the firm held $4.4 billion in cash and its equivalents and about $1.5 in non-current liabilities. Competing exchange FTX.US and Bullish are believed to be in much better financial positions. The latter is expected to launch later this year with $10 billion in funding.
The news follows the Securities and Exchange Commission threatening to sue Coinbase over its upcoming Lending-powered interest-earning product in what the company’s CEO called “sketchy” behavior, highlighting the lack of clarity and communication. Dallas Mavericks owner and “Shark Tank” judge Mark Cuban urged the company to be “aggressive” in its reaction to the regulator’s threats to fight for the future of the industry.
COIN Price Action: Coinbase shares were trading 0.58% higher at $244.41 Wednesday morning.