Additionally, financial giant Goldman Sachs recently upgraded Coinbase stock from sell to neutral.
Coinbase Global revealed its strategy to generate US$1,000 million with the issuance of convertible bonds due 2030. The plan includes a provision for initial buyers to purchase an extra $150 million to address any over-allotments. Coinbase revealed that the proceeds would go toward “working capital and capital expenditures.”
The company listed on the Nasdaq is taking advantage of the opportunity to raise that amount with the intention of allocating this capital to “general corporate purposes“.
Coinbase: looking for financing
This method of raising funds offers the potential for lower interest costs compared to traditional debt financing, gThanks to the option for investors to convert their holdings into company shares. This feature makes convertible bondsThey are an attractive option for those looking for both stable income and the possibility of growth in their investment.
However, the market did not like COIN’s ambition very much and the shares have accumulated a red of -3.47% in the last five days. However, it registers an increase of almost 50% in the last month (+46.46%) and 213% in the last six months.
Additionally, financial giant Goldman Sachs recently upgraded Coinbase stock from sell to neutral.
The convertible bond strategy emerged after Coinbase experienced operational failures on two separate occasions when Bitcoin (BTC) reached new price highs. The first time, when the crypto was approaching the $64,000 range, the company had anticipated a tenfold increase in activity, howeverthe actual figures exceeded these expectations.
Source: Ambito
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