Coinbase may be laying the groundwork for a significant expansion into digital asset holdings following its latest capital-raising strategy.
On Tuesday, the cryptocurrency exchange announced a $2 billion convertible senior note offering, which could place it among the first S&P 500 companies to buy Bitcoin using funds raised through such a financial instrument.
The move highlights an ongoing trend of capital migration from traditional markets into decentralised assets, as institutional investors increasingly seek exposure to cryptocurrencies through public companies.
$2 billion note offering split across 2029 and 2032 maturities
Coinbase is offering $2 billion worth of convertible senior notes, targeted exclusively at “qualified institutional buyers.” The issuance is split evenly between $1 billion due in 2029 and another $1 billion maturing in 2032.
These notes will be senior and unsecured obligations of Coinbase, with interest paid semi-annually in arrears. The final interest rate and conversion terms will be disclosed after pricing is completed.
In addition to the base offering, Coinbase has provided initial purchasers with an option to buy an extra $150 million of the 2029 notes and another $150 million of the 2032 tranche.
The company has not revealed whether this optional allocation has been exercised yet.
Proceeds aimed at corporate investments and capped call coverage
The net proceeds from this offering are set to be used for several purposes. A portion will cover the costs associated with capped call transactions, which are generally used to limit the dilution of stock when the notes are converted.
The remaining funds may be allocated towards working capital, capital expenditures, or strategic investments.
Coinbase has specified that this may include the acquisition of other companies, products, or technologies, suggesting potential growth through mergers or partnerships.
However, it also left room for using the capital to invest in digital assets—a notable detail given its existing holdings in Bitcoin.
Coinbase holds $1.26B in Bitcoin, adds $288M in Q2
Coinbase is currently the world’s 10th-largest public holder of Bitcoin, with 11,776 BTC on its balance sheet. At the time of writing, those holdings are worth approximately $1.26 billion, based on a market price of $114,818 per Bitcoin, according to BitcoinTreasuries.NET.
During the second quarter of 2025, the exchange acquired 2,509 Bitcoin, valued at over $288 million.
While the firm has not confirmed whether any portion of the upcoming note proceeds will be used to expand its BTC holdings, the timing of the issuance—just after a major Bitcoin accumulation—raises questions about its future plans.
Potential first for S&P 500 companies
If Coinbase does decide to use the note proceeds to acquire additional Bitcoin, it would be the first S&P 500 company to do so using funds from a convertible note offering.
This would mark a milestone in how corporate finance tools are being repurposed in the digital age, enabling large public firms to gain direct exposure to decentralised assets.
The development comes amid a broader industry shift, where institutional interest in Bitcoin and other digital assets continues to rise, driven by increasing regulatory clarity and the growing influence of crypto in capital markets.
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