Coinbase, the leading cryptocurrency platform has revealed its plans to offload a large chunk of convertible debt or senior notes. The new development came as a surprise to investors as Coinbase revealed on Monday evening that the convertible bond offering is a private one.
Everything You must know about the $1.25 billion convertible debt bill
The bonds which are due in 2026, are worth $1.25 billion and will be open to legitimate institutional buyers. The first buyers will be offered the option to buy as much as $187.5 million within a 30 day period. Investors will be able to convert the notes to raw cash or Coinbase’s stocks, precisely the Class A common stocks. This is good news for investors who are willing to cash in on a major buying opportunity.
However, with many details unknown, reactions from the market are mixed and have been credited by Barron’s news, with the dip in Coinbase’s stock decline, which was spotted on the same day the announcement was made. For the first time since Coinbase listed on NASDAQ, stocks closed at $250. Currently, the interest rate amongst other details surrounding the bond is yet to be revealed.
The new report comes in after Coinbase revealed its bullish first-quarter earnings reports, which essentially markets Coinbase as home to some of Fintech’s top institutional buyers.
Coinbase remains focused on satisfying institutional players
Meanwhile, Coinbase is still focused on advancing its technology as it revealed in its first-quarter earnings calls. The crypto-community has especially expressed excitement over the commendable “smart router.” The tool which is an asset for institutional players will help to simplify order findings.
“We also have something called a smart order router that our institutional customers use, which can basically route orders to whatever exchange has best pricing and so in the future, you may see us integrate that into our retail product as well, where every order that comes through, it can be routed behind the scenes.” Wrote Coinbase.
The users of the tool will have access to the above information from both centralized and decentralized exchanges. For Coinbase, the goal of this tool seeks to get institutions to the right hands, where customers can see the best pricing. “that’s a feature that we hope to offer in the future.” said the Company.
