Coinbase just got hit with a bit of a slap after its Q2 numbers came in soft. Revenue slipped, expenses ticked up, and what do you know?
Its shares took a dip, dropping about 15% right out of the gate on August 4.
The Strategy plan
On the other hand, Coinbase isn’t just sitting there licking its wounds. No, no, they’re making moves.
The company just announced plans to raise $2 billion via a private convertible note offering.
Picture this, they’re slicing that sum evenly into two parts, one maturing in 2029, the other in 2032, and tossing in an option for buyers to snatch up to $300 million more.
The notes are senior and unsecured, paying interest twice a year, and they can convert those notes into cash, shares, or a mix, whenever Coinbase decides.
This way, Coinbase is joining a summer trend where crypto companies, like Strategy and MARA are hitting the convertible market, balancing the fine art of flexibility with keeping shareholder dilution in check.
It’s like playing chess with your finances while walking a tightrope. To limit dilution, Coinbase plans to do what’s called capped call transactions.
Fancy talk for hedging, so when those notes convert, they don’t flood the market with shares and tank the stock price. Smart moves, boss.
Working capital
Where’s the money going? Well, the company’s playing it both offensive and defensive, some cash goes to pay for those capped calls, the rest fuels general corporate stuff.
Working capital, acquisitions, capital expenses, even buying back or redeeming old securities.
They haven’t revealed investor demand or pricing yet, but on the markets, Coinbase shares hovered just above $300, down a couple percent during the announcement.
Now, about that Q2 report, yes, revenue dipped quarter-over-quarter, expenses rose, but analysts like Benchmark are waving a buy flag, calling this a smart entry point.
They see bigger, longer-term things coming despite the not-so-amazing quarter.
Other expert, Mizuho sounded an alarm on another front, shrinking margin economics around Circle’s USDC stablecoin, which could squeeze Coinbase’s subscription and service revenues. Something to watch.
Boss mode
Oh, and here’s a little gem, Coinbase quietly ramped up their Bitcoin stash, scooping up 2,509 BTC in Q2, that’s about $222 million at the time, bringing their total hoard to 11,776 BTC.
That’s enough to bump them comfortably into the top 10 public Bitcoin treasuries. Not bad at all.
So Coinbase is navigating turbulent waters, using this $2 billion convertible note playbook to fortify its balance sheet and keep the pedal down on crypto buying power. Boss mode.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: August 6, 2025 • 🕓 Last updated: August 6, 2025
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