Coinbase’s Recent $2B Bond Offering Shows Voracious Appetite of Investors

The publically traded digital asset exchange raised $500 million more than initially planned.

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Coinbase stock is down 22% from August 11, 2021 highs following earnings release
  • Bond offering saw massive demand as investors seek yield, and want digital asset exposure

Coinbase has found a new opportunity to raise money at attractive rates, through a bond offering. Since its direct stock listing in April, the company’s $COIN shares settled into a range between about $220 and $280 per share. The stock hit the $294 mark on the day Coinbase posted a Q2 2021 result of $1 billion adjusted EBITDA (earnings before interest taxes depreciation and amortization) on August 11, before falling back toward the bottom of the range in subsequent weeks.

On September 13, the company announced plans to raise $1.5 billion in a junk bond offering, but they ended up raising $2 billion on sales of seven-year and 10-year notes, carrying interest rates of 3.375% and 3.625% respectively.

“Demand was so high,” wrote Bloomberg on September 14, that “at least $7 billion of orders poured in,” and yet, just ten days later, following news of the latest China (non-)ban, Bloomberg described the bond offering as a “debacle.”

Unlike MicroStrategy Inc., which has tapped the bond market to fund purchases of bitcoin itself, Coinbase intends to use the cash raised for general corporate purposes, which could mean anything from developing new products to executing acquisitions.

The interest rate Coinbase must pay is slightly higher than comparable corporate bonds rated just below investment grade, Bloomberg noted, but will allow the crypto exchange to diversify its offerings.

Coinbase recently cancelled plans to offer a high-yield savings-like product — dubbed Coinbase Lend — after receiving objections from the SEC, and is seeking regulatory clarity for its business. Earlier this week, the company announced a new feature to make users’ Coinbase accounts a destination for direct deposits from the paychecks of salaried employees in the United States.

The $2 billion bond sale is part of a greater trend this year of investment in businesses operating in the digital asset industry, a trend which accelerated in September.

Loading Tweet..

“The appetite capital has for crypto right now is astonishing. It will all fund the next massive adoption cycle,” noted Travis Kling of Ikigai Asset Management on Twitter, yesterday.

Ark Invest managers apparently agrees, as they recently added 184,199 shares of Coinbase, worth about $42 million, to the Ark Innovation ETF (ARKK). The price of $COIN is up 2.8% to $234 on the Nasdaq at market open.

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Ethena Labs is leaping from its flagship synthetic dollar, USDe, to a full product suite—USDtb, iUSDe, and the Arbitrum-based Converge Chain—designed to marry crypto-native yields with TradFi-grade compliance. Our analysis shows how expanding into CME, ETF options, and tokenized Treasuries could lift protocol revenue from sub-$500 million in a bear case to several billion dollars if favorable regulation and institutional adoption align.

article-image

The L1’s Interwoven Stack is the most opinionated tech stack yet

article-image

Bitcoin is still rising, 11 years after the documentary film The Rise and Rise of Bitcoin

article-image

Arch Labs CEO told Blockworks that the team plans to launch a native token, but declined to give details

article-image

CEO Mike Silagadze tells Blockworks that the US is “open for business” and why its DeFi bank offering is the first of many

article-image

Doing one thing well and leaving everything else out is often what disruptive technologies do best