Coinbase (COIN) Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying MicroStrategy’s (MSTR) BTC Playbook

Issuers use these hedges with convertible debt to stop dilution to current shareholders, even when their share worth rises above the conversion worth, although they must pay a payment. Throughout its breakneck rally, health firm Peloton famously raised $1 billion in convertible money owed in 2021, together with a capped name possibility. “The capped name transactions will cowl, topic to customary changes, the variety of shares of Coinbase’s Class A typical inventory that can initially underlie the notes,” Coinbase stated.