Bitcoin News Today: Coinbase Issues $2 Billion in Bonds to Buy Bitcoin as First S&P 500 Firm

Coinbase, the world’s third-largest and largest cryptocurrency exchange in the U.S., has announced a $2 billion convertible senior note offering that could be used to purchase Bitcoin [1]. This move positions the company as the first within the S&P 500 to buy Bitcoin using capital raised through a bond offering [1]. The offering includes $1 billion in bonds maturing in 2029 and another $1 billion in notes due in 2032 [1]. The bonds are unsecured and will pay interest semi-annually, with the final conversion terms into Coinbase shares and interest rate to be determined upon pricing [1]. The offering is exclusively directed at large institutional investors and not available to retail investors [1].

The initiative follows a similar approach taken by MicroStrategy, a leading institutional Bitcoin holder, which popularized the use of convertible bond offerings to fund Bitcoin purchases [1]. Coinbase’s strategy reflects a broader trend among crypto firms seeking alternative funding sources as equity financing becomes more challenging in a volatile market [1]. The firm has not specified the exact amount of Bitcoin it plans to purchase or the timing of the acquisition, but the structure of the offering suggests a long-term capital allocation strategy aligned with growing institutional interest in Bitcoin as a strategic asset [1].

The offering underscores the increasing acceptance of Bitcoin as part of corporate balance sheets and highlights how crypto firms are leveraging institutional financing to scale their digital asset holdings [1]. By securing long-term capital from institutional investors, Coinbase aims to support its ongoing efforts to integrate Bitcoin into mainstream financial systems [1].

Source: [1] Coinbase Makes $2 Billion Bitcoin (BTC) Move! "It Will Be The First Company To Do This" (https://en.bitcoinsistemi.com/coinbase-makes-2-billion-bitcoin-btc-move-it-will-be-the-first-company-to-do-this/)