Coinbase has added another $500 million to the size of its debt offering. Now the total amount is $2 billion. The reason for upsizing it is market interest.
September 15, 2021, | AtoZ Markets – US-based cryptocurrency exchange Coinbase has increased the volume of placement of two issues of senior bonds from $1.5 billion to $2 billion. Rating agency Moody’s classified them as “junk”.
According to the press release, the company has expanded its offer of debt securities in response to market demand.
On September 13, 2021, Coinbase announced a $1.5 billion preemptive bond offering in 2028 and 2031.
The cost of each issue will now amount to $1 billion. For securities maturing in 2028, 3.375% per annum will be paid, and for notes in 2031 – 3.625%.
“Coinbase intends to use the net proceeds from the offering for general corporate purposes, which include the development of new products, as well as potential investments or acquisitions of other companies, products or technologies,” it said in a statement.
The placement is expected to close on September 17.
Against the background of Coinbase’s issuance of debt securities, Moody’s assigned the company’s bonds a Ba1 rating, which means non-investment or junk bonds.
In its assessment, Moody’s referred to the exchange’s strong dependence on cryptocurrency prices and trading volumes, high competition in the industry, changes in regulation, and cybersecurity risks.
Previously, Coinbase faced the threat of legal action from the US Securities and Exchange Commission (SEC) in the event of launching savings accounts.
We will remind, the head of the SEC Gary Gensler believes that many assets in the listing of crypto exchanges are unregistered securities and the regulator must fight this.
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