Thomas Daniels
Coinbase Launches $2 B Convertible Note Sale to Support Stock Buybacks, Acquisitions, and Bitcoin Investment
Coinbase Global Inc., the world’s third‑largest cryptocurrency exchange, has unveiled plans to raise over $2 billion through a dual‑tranche convertible senior note offering targeting qualified institutional buyers. The offering is structured with $1 billion due in 2029 and an additional $1 billion due in 2032, with an over‑allotment option granting initial purchasers up to $150 million of each tranche.
These notes will constitute senior, unsecured obligations of Coinbase, accruing interest payable semi‑annually in arrears. Final interest rates and conversion terms will be set upon pricing.
Use of Proceeds
Proceeds from the offering will be allocated first to cover the costs of capped call transactions tied to the convertible notes. The remainder will support Coinbase’s corporate priorities—including working capital, capital expenditures, and strategic acquisitions of companies, products, or technologies.
Significantly, Coinbase may become the first S&P 500–listed company to use proceeds from a private debt raise to purchase Bitcoin, underscoring an evolving bridge between traditional capital markets and digital assets. As of now, Coinbase holds approximately 11,776 BTC, valued at roughly $1.26 billion, making it the world’s 10th‑largest public Bitcoin holder . During Q2 2025, the firm acquired an additional 2,509 Bitcoin, representing over $288 million in purchases .
Broader Trend in Crypto Financing
This convertible note issuance aligns with a broader trend in which crypto‑native firms increasingly tap traditional capital markets for expansion financing. For example, MicroStrategy (Michael Saylor’s Strategy) pioneered large‑scale equity offerings tied to Bitcoin accumulation, including a $4.2 billion at‑the‑market issuance in July 2025, followed by an IPO of a synthetic dividend‑paying stock . Similarly, Grayscale filed for an SEC IPO earlier in July 2025, signaling growing institutional appetite for crypto‑related financial instruments .
