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
  • 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

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

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.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /
article-image

“S&P 500” for crypto comes as segment gains “established role in global markets,” S&P exec says

article-image

The S&P Digital Markets 50 Index combines 15 cryptocurrencies with 35 crypto-linked companies, offering investors hybrid exposure

by Blockworks /
article-image

Gnosis is betting that openness — not ownership — will define the future of onchain money

article-image

Crypto’s quest to imbue shareholder protections for tokens

article-image

Grass previously raised a seed and Series A rounds and plans to utilize the token purchase to execute on its roadmap