Major United States-based cryptocurrency exchange Coinbase Global Inc. (NASDAQ:COIN) wants to raise even more capital through a bond offering.
What Happened: According to a Monday Bloomberg report, Coinbase plans to raise $1.5 billion through a corporate bond offering. The sale will be managed by Goldman Sachs Group Inc. (NYSE:GS) and could be priced as soon as Tuesday following a call with investors.
Coinbase’s bonds will purportedly mature in seven and 10 years, and the newly raised capital will be used for general corporate purposes including continued investments in product development and potential investments in acquisition of other firms or products or technology.
At the end of the second quarter, the company held $4.4 billion in cash and its equivalents and about $1.5 in non-current liabilities.
Coinbase is now facing increasing pressure from competitors including FTX.US and Bullish. The latter plans to launch later this year with $10 billion in funding.
The additional funds are much needed for the company to compete with those competitors that find themselves in rather good financial standing and could also help the firm expand internationally and increase its services offering.
The Securities and Exchange Commission recently threatened to sue Coinbase over its upcoming Lending-powered interest-earning product in what the company’s CEO called “sketchy” behavior.
Dallas Mavericks owner and “Shark Tank” judge Mark Cuban commented by suggesting the exchange should be “aggressive” in its dealings with the regulator to protect the future of the industry.
COIN Price Action: Coinbase’s stock price is following today’s movements of the crypto market as it lost 2.2% Monday and closed at $242.84.