Coinbase Shocks Market with $2B Capital Raise Amid Q2 Revenue Plunge – COIN Crashes 15%
Wall Street winces as crypto giant Coinbase scrambles for cash after brutal earnings miss.
The $2B Band-Aid
Facing a 15% stock nosedive, America's largest exchange pulls a classic 'spend your way out of trouble' move – just as retail traders start questioning those 0.5% staking yields.
Revenue Reality Check
Q2 numbers confirm what crypto degens feared: even blue-chip exchanges aren't immune to bear market math. Now watch institutional money park itself on the sidelines until the next 'macro narrative shift' (read: Fed pivot).
Silver lining? At least they're not FTX.
Coinbase Aims $2B Note Sale at Qualified Institutional Buyers
The $1 billion notes due in 2029 and another $1 billion due in 2032 will be offered to qualified institutional buyers under Rule 144A.
These senior unsecured notes will pay interest twice a year and can be converted into cash, Class A common stock, or a combination of both, at Coinbase’s discretion.
Redemption terms are standard, with the option for Coinbase to call the notes before maturity under certain conditions.
Initial purchasers may also be granted an option to buy up to an additional $300 million across both series, depending on market interest.
Final pricing and conversion details will be determined at the time of offering.
To limit share dilution in the event of conversion, Coinbase plans to enter into capped call transactions tied to each note series.
Coinbase is long bitcoin.
Our holding increased by 2,509 BTC in Q2, and we keep buying more. pic.twitter.com/ztx10X2YXV
These instruments are designed to reduce the impact of stock issuance above a set price and could be hedged through trading activity in Coinbase shares and derivatives around the time of pricing and during the life of the bonds.
Proceeds will fund the capped call purchases and cover broader corporate needs, including working capital, capital expenditures, acquisitions, and debt repurchases.
The company highlighted a range of securities potentially in line for redemption, including its 0.50% convertible notes due 2026 and senior notes maturing between 2028 and 2031.
Coinbase’s announcement comes amid a broader trend of crypto companies turning to convertible bonds to gain liquidity while managing shareholder dilution.
Firms such as Strategy and Marathon Digital (MARA) have also turned to the convertibles market in recent months.
Coinbase Stock Slide Labeled a ‘Buy’ by Benchmark Analysts
Meanwhile, some analysts view the stock’s slide as an opportunity. Benchmark maintained its Buy rating despite what it called “soft” results, citing long-term upside.
$COIN | 𝐂𝐨𝐢𝐧𝐛𝐚𝐬𝐞 (COIN): Mizuho maintains 𝐍𝐞𝐮𝐭𝐫𝐚𝐥, raises 𝐏𝐓 𝐭𝐨 $𝟐𝟔𝟕.𝟎𝟎 (from $217.00)
Analyst sees 𝐉𝐮𝐥𝐲 𝐯𝐨𝐥𝐮𝐦𝐞 𝐫𝐞𝐛𝐨𝐮𝐧𝐝 & 𝐬𝐨𝐥𝐢𝐝 𝐒𝐚𝐚𝐒 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 supporting outlook; stays cautious vs. 𝐝𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐞𝐝 $HOOD 𝐇𝐎𝐎𝐃… pic.twitter.com/SopXvFJi4t
Coinbase also continued its corporate Bitcoin accumulation. In Q2, the company purchased 2,509 BTC for approximately $222 million, lifting its total holdings to 11,776 BTC and placing it back among the top 10 public holders of the asset, just ahead of Tesla by coin count.
As reported, TIME has recognized Coinbase as one of 2025’s 100 Most Influential Companies, labeling the crypto exchange a “disruptor” for its significant role in shaping US digital asset policies and markets.
TIME noted the exchange as a key driver behind the industry’s policy efforts and predicted Coinbase could become the central hub for crypto trading in the US.
Beyond the US, Coinbase is broadening its reach in Europe, securing a license under the EU’s MiCA regulatory framework through Luxembourg’s financial regulator.
