Coinbase Targets USD 1.5 Billion Fundraising From Crypto Trading

JAKARTA - Coinbase Global Inc plans to raise approximately USD 1.5 billion (IDR 21.3 trillion) through debt offerings to invest in product development and potential mergers and acquisitions, US cryptocurrency exchanges.

The fundraising plan comes less than a week after the company said US regulators would sue the exchange if it went ahead with plans to launch a program that would allow users to earn interest by lending digital assets.

“This capital increase is an opportunity to leverage our already strong balance sheet with low-cost capital”, Coinbase said in a statement, Monday, September 12.

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

Since its debut in April, Coinbase shares have lost about 34% of their value. This raises questions about the safety of investing in platforms that trade various crypto assets, such as bitcoin, ethereum, and others.

Coinbase is a crypto company based in San Francisco, and backed by trusted investors. Coinbase is even called the largest Bitcoin exchange agent and broker in the world. With their exchange, called Coinbase Pro, clients can make buy and sell offers to other users on the platform and Coinbase takes a fee share of the deal.

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