Coinbase looks to raise $1.5 billion through debt offering

Bengaluru: Coinbase Global Inc. is planning to raise about $1.5 billion through a debt offering to invest in product development and potential mergers and acquisitions, the US cryptocurrency exchange said on Monday.

The fundraising plans come less than a week after the company said US regulators would sue the exchange if it went ahead with plans to launch a program allowing users to earn interest by lending digital assets.

“This capital raise represents an opportunity to bolster our already strong balance sheet with low-cost capital,” Coinbase said in a statement.

As one of the largest cryptocurrency exchanges in the world, Coinbase has benefited from the growing adoption of digital assets but has also taken a hit from the volatility and regulatory scrutiny around it.