Coinbase, the world’s third-largest cryptocurrency exchange, has announced plans to raise over $2 billion through a dual-tranche convertible note offering. The move highlights the growing trend of crypto firms seeking capital from traditional financial markets while hinting at further Bitcoin acquisitions.
$2 Billion Convertible Note Offering Unveiled
On Tuesday, Coinbase revealed a $2 billion convertible senior note offering aimed at “qualified institutional buyers.” The offering includes $1 billion in notes due in 2029 and another $1 billion maturing in 2032. These notes will be senior unsecured obligations and will accrue interest payable semi-annually. The exact interest rate and conversion terms will be finalised during the pricing stage.
Additionally, the company plans to grant the initial note purchasers an extra $150 million in principal for each tranche, potentially increasing the total offering by $300 million.
Funds to Support Strategic Expansion
Coinbase intends to use the proceeds from the offering for a range of corporate initiatives. These include general corporate purposes such as working capital, capital expenditures and potential acquisitions of other companies, products or technologies. The funds will also be used to cover costs related to capped call transactions associated with the note issuance.
Notably, this move could make Coinbase the first S&P 500-listed company to use private note proceeds to purchase Bitcoin, signalling a deeper integration of digital assets into mainstream finance.
Rising Corporate Bitcoin Holdings
Coinbase currently ranks as the world’s 10th-largest publicly listed Bitcoin-holding company. As of now, it holds 11,776 Bitcoin worth approximately $1.26 billion, according to data from BitcoinTreasuries.NET. In the second quarter of 2025 alone, the company acquired 2,509 Bitcoin valued at over $288 million.
These figures underline Coinbase’s strategic commitment to expanding its crypto reserves, potentially financed by traditional capital instruments such as convertible notes.
Crypto Firms Increasingly Tap Traditional Capital Markets
Coinbase’s move comes amid a broader trend of crypto-native firms turning to conventional financial mechanisms to raise funds. Michael Saylor’s firm Strategy, currently the world’s largest corporate holder of Bitcoin, recently launched an initial public offering of a new type of synthetic stock offering cumulative dividends. These shares are set to trade at or near a fixed price of $100 each.
This offering followed a $4.2 billion at-the-market (ATM) equity sale earlier in July, allowing Strategy to issue new shares for further Bitcoin purchases.
Meanwhile, Grayscale, a prominent crypto-focused asset management firm, submitted a confidential IPO filing with the US Securities and Exchange Commission on July 14. The filing is seen as a step toward expanding its public presence and access to traditional capital.
A Shift Toward Institutional Integration
These developments reflect a growing synergy between the crypto sector and traditional financial markets. By using established fundraising tools like convertible notes and public offerings, crypto firms are broadening their appeal to institutional investors. Coinbase’s latest offering underscores this shift, as it aligns long-term crypto strategies with conventional investment structures.
