Bitcoin News Today: Coinbase to Raise $2 Billion via Convertible Notes Amid 15% Stock Drop

Coinbase has announced plans to raise $2 billion via a private offering of convertible senior notes, split equally into two series maturing in 2029 and 2032. The offering targets qualified institutional buyers under Rule 144A and will be used to fund capped call transactions, working capital, capital expenditures, and potential debt repurchases [1]. The move follows a 15% drop in the company’s stock price on August 4, triggered by a second-quarter revenue decline and increasing costs. As of Tuesday morning, COIN shares were down more than 2% at $318 [1].

The convertible notes will be issued as senior unsecured debt, with interest paid semi-annually and conversion options available in cash, Class A common stock, or a combination of both at Coinbase’s discretion [1]. The redemption terms are standard, with early redemption options available under certain conditions. Initial buyers may also have the option to purchase an additional $300 million across both note series, contingent on market demand [1].

To mitigate potential share dilution from note conversions, Coinbase will execute capped call transactions tied to each note series. These transactions are designed to limit the dilutive impact of any stock issuance above a predetermined price and could be hedged through trading activity in Coinbase shares and derivatives [1]. The company also mentioned that the proceeds may be used for broader corporate purposes, including acquisitions and buybacks of outstanding debt.

Analysts have responded with mixed reactions to the stock decline. Benchmark analysts have maintained a “Buy” rating, citing long-term growth potential despite the “soft” Q2 results [1]. Meanwhile, Mizuho analysts upgraded their price target for COIN to $267.00 from $217.00, maintaining a “Neutral” stance, while expressing cautious optimism about improved trading volume and strong SaaS revenue performance [1].

Coinbase’s corporate Bitcoin accumulation continued in Q2, with the company purchasing 2,509 BTC for approximately $222 million, bringing its total holdings to 11,776 BTC. This places Coinbase among the top 10 public holders of the asset, just ahead of Tesla by coin count [1]. The firm’s CEO, Brian Armstrong, has emphasized Coinbase’s long-term commitment to Bitcoin through ongoing strategic purchases.

The company’s recent announcement aligns with a broader trend among crypto firms seeking liquidity through convertible bonds. Strategy and Marathon Digital are among other firms that have turned to this market in recent months [1]. The convertible bond market offers an avenue for firms to secure funding without excessive dilution, especially in volatile crypto environments.

Coinbase has also expanded its regulatory footprint, securing a license under the EU’s Markets in Crypto-Assets (MiCA) framework through Luxembourg’s financial regulator [1]. This move strengthens its presence in the European market and positions the firm to operate under one of the world’s most comprehensive crypto regulatory systems.

The news comes as TIME named Coinbase among the 2025 “100 Most Influential Companies,” recognizing the firm as a “disruptor” for its role in shaping U.S. digital asset policies and markets. The publication highlighted Coinbase as a key driver of policy efforts and predicted it could become the central hub for crypto trading in the U.S. [1].

Source: [1] Coinbse Moves to Raise $2B After Q2 Revenue Dip, COIN Drops 15% (https://cryptonews.com/news/coinbase-moves-to-raise-2b-after-q2-revenue-dip-coin-drops-15/)