Bitcoin News Today: Coinbase raises $2B via convertible notes to boost digital asset strategy

Coinbase has announced a $2 billion convertible senior note offering, signaling its strategic focus on digital asset expansion. The offering, split evenly between $1 billion due in 2029 and $1 billion in 2032, is targeted exclusively at qualified institutional buyers. The notes will be senior and unsecured obligations of the company, with interest paid semi-annually in arrears. Initial purchasers have also been granted an option to purchase an additional $150 million of each tranche, totaling up to $300 million in additional notes [1].

The proceeds from the offering are expected to be used for a range of corporate purposes, including capped call coverage to mitigate share dilution upon conversion of the notes. The remaining funds could be directed toward working capital, capital expenditures, or strategic investments. Notably, Coinbase has left open the possibility of allocating the capital toward digital assets, an area in which it already has a substantial stake. The firm currently holds 11,776 Bitcoin, valued at approximately $1.26 billion at the time of writing, making it the 10th-largest public holder of the cryptocurrency [1].

Coinbase added 2,509 Bitcoin to its holdings during Q2 2025, valued at over $288 million. While the company has not explicitly stated that the note proceeds will be used to increase its Bitcoin position, the timing of the offering raises speculation about its future intentions. If the funds are ultimately used to acquire more Bitcoin, this would mark a historic moment—Coinbase would become the first S&P 500 company to buy Bitcoin using capital raised through a convertible note offering [1].

This move reflects a broader trend of institutional capital increasingly allocating to digital assets, particularly as regulatory clarity improves and the role of crypto in capital markets continues to evolve. The use of conventional corporate finance tools to gain exposure to decentralised assets represents a shift in how traditional financial institutions are adapting to the crypto landscape.

The convertible note offering also highlights the growing importance of financial flexibility in the crypto industry. By securing a large capital infusion, Coinbase positions itself to explore potential mergers, partnerships, or product expansions. The flexibility to direct the proceeds toward digital assets further underscores its commitment to integrating cryptocurrencies into its long-term corporate strategy [1].

Source: [1] Coinbase eyes digital asset expansion with $2B convertible note offering (https://invezz.com/news/2025/08/05/coinbase-eyes-digital-asset-expansion-with-2b-convertible-note-offering/)