Coinbase looking to raise $1.5 billion through debt offering


FILE PHOTO: The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton

(Reuters) -Coinbase Global Inc is planning to raise about $1.5 billion through a debt offering to invest in product development and potential mergers and acquisitions, the U.S. cryptocurrency exchange said on Monday.

The fundraising plans come less than a week after the company said U.S. regulators would sue the exchange if it went ahead with plans to launch a program allowing users to earn interest by lending digital assets.

"This capital raise represents an opportunity to bolster our already-strong balance sheet with low-cost capital," Coinbase said in a statement.

As one of the largest cryptocurrency exchanges in the world, Coinbase has benefited from the growing adoption of digital assets, but has also taken a hit from the volatility and regulatory scrutiny around it.

Since its debut in April, Coinbase shares have lost about 34% of their value.

A month after listing, the company had said it would offer $1.25 billion in senior notes due 2026, to raise funds for general corporate purposes.

(Reporting by Eva Mathews in Bengaluru; Editing by Arun Koyyur)

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