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Coinbase Global to raise $2 billion through convertible notes as it seeks to rebuild confidence after a weak quarter.
The crypto exchange’s stock fell sharply after missing Wall Street revenue targets. This funding marks a strategic move to strengthen its financial position and boost flexibility.
Coinbase will split the convertible notes offering equally between maturities in 2029 and 2032. Buyers will include only qualified institutional investors under Rule 144A. The total raise could hit $2.3 billion if additional purchase options are exercised. This move follows a 15% stock drop after second-quarter results fell short.
The company reported $1.5 billion in revenue, slightly below analyst expectations of $1.6 billion. Coinbase stock dropped again after announcing the new notes. Concerns over potential dilution remain despite protective capped call agreements meant to limit shareholder impact.
Strategic funding amid stock volatility
Coinbase Global to raise $2 billion through this convertible debt is part of a larger strategic pivot. The proceeds will support general corporate needs, including working capital, potential acquisitions, and equipment. Some funds may go to buy back debt or repurchase shares, streamlining its financial structure.
Analysts are split. Benchmark maintains a “Buy” rating and boosted its price target to $421. Mizuho also raised its target to $267 but kept a “Neutral” stance. The divided views reflect broader market uncertainty about dilution, volatility, and regulatory conditions.
Coinbase may also be exploring a bold move: buying Bitcoin with the funds. If it proceeds, it would be the first S&P 500 company to buy Bitcoin using capital from convertible note sales. Coinbase already owns over 11,700 Bitcoin, worth approximately $1.26 billion.
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Could Coinbase buy more Bitcoin?
Coinbase Global to raise $2 billion amid industry trends toward convertible debt suggests growing synergy between traditional finance and crypto. MicroStrategy and MARA Holdings recently raised billions the same way. These deals allow crypto firms to avoid immediate share dilution while attracting traditional capital.
Convertible notes offer flexible structures. They pay interest, offer upside if stock prices climb, and delay equity dilution. Investors gain conversion potential, and companies retain more control. The move helps Coinbase operate competitively while weathering reduced trading volumes.
Retail trading revenue remains under pressure. Transaction income dropped 39% last quarter to $764 million, missing expectations. However, subscription and services revenue rose 9% to $656 million. Stablecoin activity also showed strength, climbing 38% year-over-year.
Coinbase shifts to sustainable revenue
Coinbase Global to raise $2 billion shows the exchange’s resilience and long-term planning. Despite declining transaction revenue, Coinbase is expanding into regulatory, tech, and global markets. TIME magazine named Coinbase one of 2025’s most influential companies. With European approvals and new product offerings, Coinbase is diversifying its core model.
As crypto markets evolve, Coinbase aims to lead through innovation, strategic capital use, and investor confidence-building measures. The convertible debt plan is one part of a wider push to sustain growth in a complex financial landscape.
