Bitcoin and ether fall as tensions between Israel and Iran intensify: CNBC Crypto World
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CFTC to allow spot crypto asset contract trading on registered exchanges: CNBC Crypto World
On today's eposide of CNBC Crypto World, major cryptocurrencies and stocks fall as traders digested weaker-than-expected economic data and new tariff comments from President Trump. Plus, James Gernetzke, CFO at the crypto wallet Exodus, explains the firm's crypto treasury management strategy.
Yahoo
an hour ago
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Coinbase Just Dropped a $2 Billion Bomb--Here's What It Really Means for Crypto Investors
Coinbase (NASDAQ:COIN) is hitting the convertible debt market with a $2 billion offeringits biggest capital raise of the yearas crypto firms hustle to secure low-cost funding. The company plans to use the proceeds to potentially buy back stock and redeem existing debt. This comes after COIN dropped 17% last week, following a Q2 earnings miss. Revenue rose just 3.3% year-over-year to $1.5 billion, short of analyst estimates and down sharply from $2 billion in Q1. The stock dipped another 4% Tuesday morning to $304.04, though it remains up more than 25% year-to-date. Warning! GuruFocus has detected 7 Warning Signs with COIN. The deal is split into two tranches: zero-coupon notes maturing in 2029 and 2032, offering conversion premiums of 50%55% and 30%35%, respectively. It also includes a capped call featuredesigned to soften dilution risk if the bonds convert into equity. JPMorgan is running the book, and pricing is expected Tuesday night. Coinbase isn't alone here. Crypto-aligned namesfrom Michael Saylor's playbook to GameStophave been rushing into convertible issuance, possibly eyeing a friendlier regulatory environment under President Donald Trump's administration. With $51.9 billion already raised in equity-linked securities across the U.S. this year (though still trailing last year's pace), Coinbase's move could be signaling more than just balance sheet management. It might be a bet on crypto's next cycleand a signal to investors that, despite short-term revenue softness, COIN isn't retreating. Whether this pays off depends on more than just bond termsit hinges on where digital asset markets head next and whether policy winds turn as expected. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Coinbase plans $2bn debt raise four years after previous offering
Coinbase, the biggest US-based crypto exchange, plans to raise another $2 billion worth of debt days after posting a lacklustre earnings report. The offering, which is only open to qualified institutional buyers, comprises $1 billion of so-called Convertible Senior Notes due in 2029, and another $1 billion of notes due in 2032. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership The firm says it will use the funds raised for general corporate purposes, such as investments in and acquisitions of other companies, and to buy back shares and previously issued debt. It comes as Coinbase's second quarter earnings report revealed a 25% drop in income from the previous quarter, 6% below analysts' expectations. Coinbase shares dropped 10% on the news, adding to a 24% drawdown since the stock hit an all-time high of above $444 on July 18. Coinbase declined a request for comment. Higher rates Coinbase conducted a similar debt offering in September 2021, raising $2 billion by issuing senior notes due in 2028 and 2031. The round was oversubscribed, with at least $7 billion in offers for the bonds, Bloomberg News reported at the time. Coinbase agreed to pay just under a 3.4% interest rate on the 2028 notes and slightly over a 3.6% rate on those due in 2031. The interest rates and terms for the latest debt raise will be determined upon pricing of the offering, the firm said. But the rates will almost certainly be higher than the previous offering. That's because it's uncommon for private companies to raise debt at a lower interest rate than the US federal funds rate, which currently sits at 4.25% and 4.5% compared to the 0% to 0.25% rate during Coinbase's previous debt offering. Issuing shares Coinbase said the debt will be convertible into cash or shares at the firm's discretion. This means that Coinbase could issue more shares between the offering and when the notes expire to reduce its debt burden. Investors are often wary of firms issuing more shares as it dilutes their ownership and can negatively impact share price. Coinbase said it expects to attach capped call transactions to the debt that it sells, which the firm says should reduce the issuance of new shares from any future debt conversion. Coinbase shares are down 2.5% on the day. Tim Craig is DL News' Edinburgh-based DeFi Correspondent. Reach out with tips at tim@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
