Coinbase Global Inc (NASDAQ:COIN) said on Tuesday it plans to raise $2 billion through a private offering of convertible senior notes, with $1 billion each due in 2029 and 2032.
Shares fell nearly 5% in Tuesday morning trading as investors digested the new fundraising plan.
Buyers will have the option to purchase up to an additional $150 million of each note tranche, potentially increasing the total deal size to $2.3 billion.
Sources told Reuters the 2032 notes are expected to carry a conversion premium of between 30% and 35%, though final pricing terms, including interest rates and conversion prices, will be determined at the time of pricing.
Coinbase said it plans to use a portion of the proceeds to enter into capped call transactions, designed to mitigate dilution upon potential conversion of the notes. Remaining funds will go toward general corporate purposes.
Shares of Coinbase were down to $302.60 in early trading on Tuesday.
The stock has gained more than 21% in the year to date, benefiting from rising interest in cryptocurrency trading and broader gains in digital asset prices.