Coinbase, one of the world’s leading cryptocurrency exchanges, has announced a $2 billion convertible senior note offering aimed at raising funds for corporate expansion, stock buybacks, and potential acquisitions. This move marks a significant step as traditional market strategies increasingly blend with digital asset investments.

Dual-Tranche Offering to Institutional Buyers

The company revealed plans to issue the notes in two parts, with $1 billion maturing in 2029 and another $1 billion in 2032. These notes will be offered exclusively to qualified institutional buyers. In a regulatory filing, Coinbase described the notes as senior unsecured obligations that will accrue interest payable semi-annually. Specific interest rates and conversion terms will be finalised upon pricing.

Additionally, the company intends to grant initial purchasers the option to buy an extra $150 million worth of each tranche. Proceeds from the offering will be used to cover the costs of capped call transactions, as well as for broader corporate purposes including working capital, capital expenditures, and strategic investments or acquisitions.

A Potential First for the S&P 500

Coinbase’s announcement has sparked speculation that it may become the first S&P 500-listed company to use proceeds from a private note offering to acquire Bitcoin. If confirmed, it would represent a major milestone in the ongoing shift of institutional capital into digital assets.

The firm currently holds 11,776 Bitcoin, valued at approximately $1.26 billion, making it the tenth-largest public Bitcoin holding entity globally. In the second quarter of 2025 alone, Coinbase added 2,509 Bitcoin to its reserves, worth over $288 million at the time of acquisition.

Crypto Firms Increasingly Tap Traditional Markets

Coinbase’s move reflects a broader trend among crypto-focused companies seeking to raise capital through traditional financial instruments. These note offerings and public stock initiatives allow firms to attract institutional investors while continuing to expand their crypto holdings.

Michael Saylor’s Strategy, the largest corporate Bitcoin holder, has led the charge in this area. On 21 July, Strategy launched an IPO of five million shares of a new type of synthetic stock, offering cumulative dividends and trading near its $100 stated value. This offering followed a $4.2 billion at-the-market equity sale announced on 7 July, designed to raise capital for further Bitcoin purchases.

Grayscale Also Eyes Public Offering

Meanwhile, Grayscale, a major crypto-focused asset management firm, has also taken steps towards public fundraising. On 14 July, the company submitted a confidential IPO filing with the US Securities and Exchange Commission, signalling its intention to expand access to traditional capital markets.

These developments highlight the growing convergence between traditional financial markets and the crypto industry. With major players like Coinbase, Strategy, and Grayscale leading the way, digital asset firms are finding new routes to scale and diversify their operations.