Coinbase Eyes $2 Billion Power Move with Convertible Notes Offering

Coinbase just dropped a bombshell—Wall Street meets crypto again as the exchange aims to raise $2 billion in convertible debt. Here's why it matters.

The Convertible Notes Playbook

Convertible notes let investors switch debt for equity later—usually at a discount. For Coinbase, it's a hedge-friendly way to tap capital without immediately diluting shareholders. Smart? Or a sign they're prepping for rougher seas?

Why Now?

With crypto markets thawing post-winter, Coinbase is stacking chips. $2 billion suggests either aggressive expansion plans... or that they've spotted blood in the water (looking at you, struggling competitors).

The Street's Take

Analysts are split: bulls see a war chest for acquisitions, bears whisper 'desperation play.' Meanwhile, traditional finance guys are still trying to pronounce 'blockchain.'

One thing's clear—when crypto's blue-chip stock makes moves this big, the entire sector feels the tremors. Buckle up.

Coinbase Following Strategy’s Move

Coinbase’s latest fundraising move follows a similar approach from the legacy Bitcoin firm Strategy, which has raised over $8.14 billion through convertible notes. 

A convertible note is a debt instrument that carries the potential to be converted into equity at a later date. This kind of offering often includes a discount rate in acquiring ownership in the firm and a valuation cap to entice investors. 

Weak Q2 Results for Coinbase

The fundraising comes after the exchange’s mixed Q2 results, where its revenue increased by 3.4% year-over-year to $1.5 billion, but non-GAAP diluted EPS dropped significantly to $0.12. Although adjusted EBITDA declined, non-recurring gains from Coinbase’s Circle stake and crypto portfolio were notable. 

Moreover, transaction revenue—which is a Core business area of the exchange—saw a decline due to subdued market volatility and reduced trading activity. In addition, the firm’s operating expenses also rose significantly. 

Also read: Bybit Launches Updated App to Empower Crypto Users