Bitcoin News Today: Coinbase to Raise $2 Billion in Convertible Notes After Q2 Earnings Miss

Coinbase Global Inc. (NASDAQ: COIN) announced plans to raise $2 billion through a private offering of convertible senior notes, following a disappointing Q2 earnings report that revealed a revenue decline and rising costs [2]. The offering will be split into two tranches—$1 billion maturing in 2029 and the remainder in 2030—with an additional $300 million in optional capacity [2]. The notes, which are unsecured and pay semiannual interest, can be converted into cash, Coinbase Class A shares, or a combination of both [2]. Final terms, including interest rates and conversion details, will be determined at a later date [2].

The offering includes capped call transactions to limit equity dilution should the notes be converted [2]. Proceeds will also be used to fund these transactions, along with general corporate purposes such as strategic acquisitions, capital expenditures, and repaying existing debt, including $0.50% notes due in 2026 and senior notes maturing between 2028 and 2031 [2]. If completed, the offering would mark the first time an S&P 500 company has used proceeds from convertible debt to purchase bitcoin [2].

Coinbase’s shares fell 15% last week in response to its Q2 results, which highlighted a quarter-on-quarter revenue dip and higher costs, fueling investor concerns about the company’s path to profitability [2]. The announcement of the debt offering pushed shares lower in pre-market trading, reflecting mixed sentiment about the financing strategy [2].

While the move provides Coinbase with much-needed capital without immediate share dilution, it also underscores growing reliance on debt in a sector marked by regulatory uncertainty and market volatility [1]. Analysts have adjusted their outlooks accordingly. Benchmark called the recent decline a buying opportunity, pointing to long-term tailwinds, while Mizuho warned of tighter margins in Coinbase’s partnership with Circle on the USDC stablecoin program, which could pressure services revenue [2].

Coinbase has also continued to expand its crypto reserves. In Q2, it added 2,509 bitcoin, valued at $222 million at the time, bringing its total holdings to 11,776 BTC—enough to surpass Tesla and place the company among the top 10 public entities in bitcoin ownership [2].

The timing of the offering also overlaps with a high-profile partnership with JPMorgan Chase, announced in mid-July, which allows Chase customers to buy crypto with credit cards and redeem rewards for stablecoins [6]. Although the partnership initially boosted Coinbase’s stock, it does not directly address the earnings-driven concerns that prompted the convertible debt offering [6].

The broader market is watching to see how effectively Coinbase can leverage the raised capital to drive growth and meet investor expectations. For now, the offering reflects a strategic step in navigating an uncertain crypto landscape while maintaining its position as a leading digital asset exchange [2].

Source:

[1] FinanceFeeds – [https://financefeeds.com/coinbase-plans-2-billion-convertible-notes-sale-after-earnings-miss/](https://financefeeds.com/coinbase-plans-2-billion-convertible-notes-sale-after-earnings-miss/)

[2] Seeking Alpha – [https://seekingalpha.com/news/4478242-coinbase-proposes-2b-convertible-debt-offering](https://seekingalpha.com/news/4478242-coinbase-proposes-2b-convertible-debt-offering)

[4] MoneyCheck – [https://moneycheck.com/coinbase-plans-2b-convertible-senior-notes-sale-to-fuel-growth/](https://moneycheck.com/coinbase-plans-2b-convertible-senior-notes-sale-to-fuel-growth/)

[5] Investing.com – [https://www.investing.com/equities/coinbase-global-news](https://www.investing.com/equities/coinbase-global-news)

[6] FinanceFeeds – [https://financefeeds.com/jpmorgan-coinbase-tie-up-what-you-need-to-know/](https://financefeeds.com/jpmorgan-coinbase-tie-up-what-you-need-to-know/)