• Interest rates, redemption provisions and other terms of notes were not disclosed in the company’s statement
  • Coinbase Global Inc. (COIN) shares fell on Monday’s news, shedding 2.37% to $242.44, as of press time

Coinbase, one of largest cryptocurrency exchange platforms in the world, announced Monday that it plans to sell $1.5 billion of seven-year and 10-year debt to fund general corporate purposes such as potential acquisitions and future product development.  

The $1.5 billion aggregate principal amount of its Seniors Notes are due in 2028 and 2031, the company revealed in a statement. However, interest rates, redemption provisions and other terms of notes were not disclosed in the press release.

“Neither the notes nor the related guarantee have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from such registration requirements,” the firm said in the statement.

Coinbase declined to comment on the private sale, as of press time. 

The announcement takes place as the Nasdaq-listed crypto company faces increased regulatory scrutiny from the US Securities and Exchange Commission (SEC). Last week, the SEC threatened to sue the company if it launches its forthcoming lending program. The product, known as Lend, will allow users to earn interest on lended assets. 

“As surprised as we were at the SEC’s threat to sue without ever telling us why, we want to be transparent with you about the course of events leading up to it,” Paul Grewal, chief legal officer of Coinbase, wrote in a blog post Tuesday. “A healthy regulatory relationship should never leave the industry in that kind of bind without explanation. Dialogue is at the heart of good regulation.”

The launch will be delayed until at least October as a result of the notice, Grewal added. 

Coinbase Global Inc. (COIN) shares fell on Monday’s news, shedding 2.37% to $242.66, as of press time.

Are you a UK or EU reader that cant get enough investor-focused content on digital assets?Join us in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. Buy it now.

  • Morgan Chittum is a New York-based reporter covering markets, NFTs, the metaverse and digital assets. Before Blockworks she was a street reporter at New York Daily News, where she wrote about homicide, extremist groups, state politics and other critical topics in New York. She was a Media and Journalism Fellow at the Poynter Institute, where she dabbled in data and investigative journalism. She is published in American Banker, Yahoo News, Chicago Tribune and more.