Coinbase Seeks to Raise $1 Billion to Invest in Crypto Rally

• Coinbase plans to raise $1B through a convertible debt offering, following MicroStrategy's successful model of funding crypto purchases • The offering includes a "capped call" provision to reduce dilution when notes convert to equity in 2030 • Coinbase is raising funds amidst a bitcoin rally to 67% YTD; its stock also rose 48%
• The move comes as Wall Street analysts upgrade Coinbase stock, citing the crypto market rally • Coinbase may use proceeds to repay debt, fund capped call transactions, or acquire other companies