Coinbase to offer $1B convertible senior notes [EN]

Show Notes

Coinbase announces a $1B convertible senior notes offering for debt repayment and acquisitions, Ethereum's Layer-2 tokens surge ahead of the Dencun upgrade, Terraform Labs gets court approval to hire Dentons amidst SEC lawsuit, Block begins shipping its self-custody Bitcoin wallet BitKey, OKX gains in-principle approval for a payment institution license in Singapore, and Tensor reveals plans to issue a governance token for its Solana-based NFT marketplace.

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Host 1:"Is there anything better than a steaming cup of coffee to jumpstart the day?"
Host 2:"Ah, I beg to differ. How about a sumptuous serving of bacon and eggs? Or perhaps, given your penchant, a tantalizing tidbit of crypto news?"
Host 1:"Nailed it! We've got some scintillating crypto updates that will jolt you awake quicker than a double shot of espresso. So, ladies and gentlemen, fasten your seatbelts. We're delving deep into the crypto-verse!"
Host 2:"Ah, I'm all ears! Let me hazard a guess... Has Coinbase once again caused a stir in the crypto world?"
Host 1:"Absolutely spot on! They've just made a colossal move - a jaw-dropping $1 billion offering of convertible senior notes. It's a go big or go home situation, wouldn't you agree?"
Host 2:Goodness gracious! That's quite substantial! I daresay Ethereum's Layer-2 tokens must be experiencing quite the meteoric rise, wouldn't you agree?
Host 1:"Absolutely! They're hurtling ahead of the Dencun upgrade. It's akin to witnessing a SpaceX launch, old chap."
Host 2:"Ah, a delightful segue into cosmic conundrums! It seems Terraform Labs is indeed encountering a celestial tempest in the form of an SEC lawsuit. Quite the astronomical predicament, wouldn't you say?"
Host 1:"Indeed, but with Dentons coming on board, they seem to have the all-clear to navigate away from the debacle."
Host 2:"Ah, that's quite the crypto spectacle! And what about Block? Are they rolling out their self-custody Bitcoin wallet, BitKey?"
Host 1:"Absolutely! It's like an early Christmas for the Bitcoin enthusiasts. And brace yourselves, because OKX is causing quite a stir in Singapore."
Host 2:"Indeed, they've secured the green light for a payment institution license, haven't they?"
Host 1:"Absolutely splendid! And to add a touch of finesse, Tensor is poised to unveil a governance token for its Solana-based NFT marketplace. Quite the intriguing development, wouldn't you say?"
Host 2:"Quite the enthralling spectacle, isn't it? It's as if we're witnessing a crypto-infused rendition of Game of Thrones!"
Host 1:"Quite right! So, dear listeners, do stay tuned. We have some exhilarating updates heading your way. After all, in the world of crypto, monotony is simply unheard of!"
Host 1:"Quite the conundrum, isn't it? We often find ourselves delving into the realm of crypto giants, don't we? And lo and behold, Coinbase, the grandest of them all in the U.S. crypto exchange arena, is causing quite the stir."
Host 2:"Ah, the $1 billion in convertible senior notes they're offering? Quite a shrewd move, wouldn't you agree?"
Host 1:"Indeed! I daresay some of our esteemed listeners may find themselves pondering the rationale behind Coinbase's intriguing maneuver. After all, it's quite the head-scratcher, isn't it?"
Host 2:"Ah, my dear audience, it's rather straightforward, you see. Coinbase intends to utilize the proceeds from the sale of these notes to settle their current debts and for general corporate purposes. This encompasses working capital, capital expenditures, the expenses related to potential capped call transactions, and potential new acquisitions. Quite a strategic move, wouldn't you agree?"
Host 1:"Ah, it's akin to a masterful chess maneuver, strategically fortifying their financial standing, wouldn't you say?"
Host 2:"Indeed! A fascinating tidbit for our esteemed audience: these notes are set to mature in 2030. This implies that the buyers will have the option to convert the notes into cash, shares of Coinbase's Class A common stock, or a delightful blend of both, commencing from that year."
Host 1:"Quite the long game indeed! And word on the street is that they're exclusively offering these notes to institutional investors through a private placement. Quite the exclusive affair, wouldn't you say?"
Host 2:"Indeed! They've cleverly included an option for buyers to acquire an additional $150 million of the securities within the initial 30 days. The company's strategy involves repaying the proceeds at maturity, or repurchasing or redeeming the notes before they reach maturity."
Host 1:"It's akin to a riveting game of Monopoly, wouldn't you agree?"
Host 2:"Indeed! And do you know what's even more intriguing? Convertible senior notes are not a novelty. MicroStrategy, the largest corporate Bitcoin holder, recently ventured into the realm of convertible senior notes to acquire more Bitcoin. Quite the fascinating trend, wouldn't you agree?"
Host 1:"Indeed, I recall that quite vividly! They did indeed acquire an additional 12,000 Bitcoin, and at a staggering sum of $821.7 million, no less. Quite the audacious move, wouldn't you agree?"
Host 2:"Indeed, and at present, their reserves stand at a remarkable 205,000 tokens, valued at an astounding $14 billion at current market prices. The acquisition of $800 million worth of tokens was facilitated by the proceeds from the issuance of the convertible senior notes."
Host 1:"Quite the abundance of numerical figures! However, it's evident that these enterprises are strategically fortifying their positions within the crypto market."
Host 2:"Indubitably! It's a captivating realm, and I'm positively eager to witness the unfolding events."
Host 1:You know, it's akin to a high-stakes poker game, this crypto world. By the way, have you caught wind of the recent price surge in the native tokens of Layer-2 Ethereum scaling networks?
Host 2:"Oh, you're referring to the tokens of Optimism, Arbitrum, and Polygon? Indeed, I have! It's as if they've received a jolt of energy. Optimism's native token, OP, reached a peak of $4.57, marking a 7% surge from the previous day. And as for Arbitrum and Polygon, their tokens, ARB and MATIC, experienced impressive leaps of 15% and 12% respectively within just 24 hours!"
Host 1:Absolutely spot on! It's as if they've been engaging in some rigorous crypto calisthenics. And all of this transpired just prior to the Dencun upgrade on the Ethereum blockchain network, which was set in motion on Wednesday.
Host 2:"Ah, the Dencun upgrade! It's akin to a monumental leap forward, reminiscent of the Merge upgrade in September 2022 and the Shangai upgrade in April 2023. It's as if the Ethereum network has been equipped with a turbo boost, enhancing transaction cost, speed, and scalability."
Host 1:"Indeed! The crux of this upgrade lies in the introduction of a new element known as 'blobs' to the blockchain. It functions as a distinct storage compartment for network data, effectively curbing expenses."
Host 2:Absolutely splendid analogy! It's akin to acquiring a larger wardrobe for your data at a fraction of the cost! No wonder the native tokens of Ethereum-based Layer-2 solutions responded so favorably. The crypto community anticipates that this upgrade will pave the way for extensive scalability through the Layer-2 solutions by reducing expenses associated with data availability.
Host 1:"Ah, quite the astute analogy! For our esteemed listeners who may not be well-versed in the intricacies of Layer-2 networks, allow me to draw a comparison. Picture them as the express lanes on a bustling motorway. Their primary objective is to expedite transactions and diminish fees on the main network. How, you ask? By extracting transaction data from the primary blockchain, compressing it, and subsequently reintegrating it into the original chain. Quite the ingenious solution, wouldn't you agree?"
Host 2:"Quite the clever comparison! It's akin to finding a savvy shortcut to bypass the traffic, yet still arriving at the same destination. And speaking of destinations, what implications do you foresee for the future of Ethereum and Layer-2 networks?"
Host 1:"That's a splendid inquiry, and one that I'm certain our esteemed listeners are pondering as well. With the Dencun upgrade and the emergence of Layer-2 networks, it appears that Ethereum is hurtling down the path of enhanced scalability and efficiency. However, as is customary in the crypto realm, only time will unveil the full extent of its trajectory."
Host 2:Absolutely splendid! And to our esteemed audience, we are most eager to glean your perspectives on this matter. Might the Dencun upgrade usher in a transformative era for Ethereum and Layer-2 networks? We eagerly anticipate your insights, so do share your thoughts with us on our various social media platforms!
Host 1:"And do remember to join us next time as we delve into the latest trends in the crypto sphere. Until then, keep your crypto acumen sharp and your wallets at the ready!"
Host 1:"Ah, you're our resident crypto whiz kid. Have you caught wind of the latest installment in the Terraform Labs saga?"
Host 2:"Ah, quite the enthralling narrative, reminiscent of a real-life drama, albeit with a plethora of blockchains and a conspicuous absence of amnesia. Now, here's a captivating development: U.S. Bankruptcy Judge Brendan Shannon has granted Terraform Labs the green light to engage the services of the esteemed law firm Dentons for their defense in the SEC lawsuit."
Host 1:"That's quite the substantial maneuver, particularly in light of the opposition from the SEC, Terraform Labs' creditors, and the Office of the U.S. Trustee, wouldn't you say?"
Host 2:"Quite the contentious issue, indeed! There was quite the uproar over the retainer Terraform Labs paid to Dentons. The argument was that the firm utilized a substantial portion of its funds, which could have been allocated to creditors, without their consent and beyond the purview of the bankruptcy court's oversight."
Host 1:"And has Terraform Labs not transferred a staggering $166 million to Dentons since the beginning of 2023?"
Host 2:"And indeed, Dentons had retained over $70 million in advance legal fees. However, in a bid to allay these concerns, Dentons has consented to reimburse $48 million to Terraform Labs and has committed to conducting future legal proceedings under the vigilant oversight of the bankruptcy court."
Host 1:"But they're retaining the remainder to cover the legal expenses stemming from the SEC's lawsuit, aren't they?"
Host 2:"Indeed, the SEC has leveled accusations against Terraform Labs and its co-founder Do Kwon, alleging customer fraud and the sale of unregistered securities amounting to billions. A trial looms on the horizon to ascertain the extent of Terraform Labs' liability in settling these grave charges."
Host 1:"And to think, this all unfolded in the wake of the Terra ecosystem's collapse in 2022, resulting in a staggering $60 billion wipeout from the crypto market. It's akin to a high-stakes game of Monopoly, but with genuine currency and real-world repercussions."
Host 2:"Let's not overlook the fact that Do Kwon is presently detained in Montenegro for document forgery, awaiting extradition to the U.S. or South Korea. He's confronted with a litany of charges, encompassing fraud, violations of securities law, misleading investors, illicit fund collection, and the establishment of a Ponzi scheme."
Host 1:"It's been quite the rollercoaster, hasn't it? A stark reminder to our esteemed listeners to always conduct their due diligence before delving into any investment, particularly within the unpredictable realm of cryptocurrency."
Host 1:"In the realm of high-stakes crypto, there's always something intriguing afoot. Have you caught wind of the latest developments from Jack Dorsey's digital payments company, Block?"
Host 2:"Ah, the BitKey, I presume? Indeed, I've been keeping a keen eye on that. It's their innovative self-custody Bitcoin wallet, isn't it? I believe they've recently commenced shipping it, correct?"
Host 1:"Absolutely! And it's no ordinary wallet, I must say. It's a hexagon-shaped contraption that empowers users to securely store and fully control their crypto assets without relying on any third party. It's akin to having your very own private bank for your digital assets. And for our esteemed listeners who may not be familiar, a self-custody wallet is a digital wallet where you retain full control over your crypto keys, granting you complete authority over your assets."
Host 2:"Quite the insightful elucidation. And if memory serves me right, it has the capability to interface with various crypto exchanges and payment services such as Coinbase and Cash App. This enables the seamless transfer of assets between different platforms and even facilitates the buying and selling of Bitcoin within the app itself. It's akin to possessing a versatile Swiss Army knife for managing your digital assets!"
Host 1:"Spot on! And here's the intriguing part: the contraption employs three private keys for access. Two are in the possession of the user, while one is safeguarded on BitKey's servers. It's akin to a triple-lock system for your digital treasure trove."
Host 2:"Quite a clever analogy, I must say. It's not just a matter of security, but also about recovery. If you misplace your phone, one of the keys is securely stored offline in the wallet. And in the event of losing both the phone and the wallet, the third key on the server can come to your rescue. It's akin to having a digital guardian angel, wouldn't you agree?"
Host 1:"Quite right, it's akin to a safety net for your digital assets. And to ponder that Jack Dorsey initially unveiled Block's work on this new hardware wallet just last year. They've certainly made remarkable progress since then. As Dorsey himself articulated, 'We're endeavoring to make Bitcoin custody more intuitive and safer.'"
Host 2:"Indeed, they certainly have. It's not just about the technology; it's about the profound impact it could have. This has the potential to revolutionize the way people manage their digital assets, a significant stride towards self-sovereignty in the digital realm. And for our esteemed listeners seeking further enlightenment, there's a splendid article on CoinDesk that delves into this fascinating development."
Host 1:"Absolutely spot on. It's a remarkably dynamic landscape out there, and the trajectory it's taking is quite enthralling. So, ladies and gentlemen, do keep your wits about you for further captivating developments in the realm of cryptocurrency!"
Host 1:"Ah, have you caught wind of the latest from OKX, the Seychelles-based crypto exchange? Quite the intriguing development, I must say."
Host 2:"Indeed! OKX has recently secured provisional approval for a significant payment institution license in Singapore. This is quite noteworthy, as the Monetary Authority of Singapore, renowned for its stringent approach to the crypto market, doesn't dole these out liberally."
Host 1:"Absolutely right. However, prior to obtaining the full license, OKX must demonstrate a steadfast commitment to robust anti-money laundering measures. Once they do so, they'll be poised to offer their digital asset services in the region, and potentially surpass the customary limits for payment services."
Host 2:"Quite so! They'll have the opportunity to surpass the standard $2.2 million limit for individual payment services and the monthly $4.4 million limit for multiple payment services. It's akin to having the liberty to order the entire array from the restaurant's menu!"
Host 1:(laughs) Quite the astute observation. Hong Fang, the President of OKX, has indeed emphasized the significance of Singapore as a pivotal market for their operations. Their sustained investment in the region speaks volumes, and his commendation of the city-state's lucid and meticulous regulatory framework is indeed noteworthy.
Host 2:"And they're not limiting themselves to just Singapore. Their strategy involves initially introducing their spot trading products there, followed by establishing local banking connections to cater to their customers in the region and expanding their range of offerings. It's akin to a DJ starting with a chart-topping hit and then seamlessly blending in local favorites to keep the crowd thoroughly engaged."
Host 1:(laughs) Oh, your analogies are always a delight! But you're absolutely spot on. This preliminary license in Singapore follows OKX's expansion into several other markets, including Brazil, Argentina, and Turkey. They've also established operations in Hong Kong, the UAE, the Bahamas, and France.
Host 2:"It's akin to a grand world tour, isn't it? And they're not the only ones. Several other crypto-related firms have also secured full or in-principle approval in Singapore, including Upbit, BitGo, Bitstamp, Revolut, Coinbase, Crypto.com, Blockchain.com, Paxos, Ripple, and Circle. Quite the impressive lineup, I must say!"
Host 1:"It's undeniably a hub of activity for the crypto world. And speaking of vibrant hubs, let's transition to our next captivating topic..."
Host 1:"Ah, you're well aware of our penchant for delving into the scintillating realm of cryptocurrency, aren't you?"
Host 2:Absolutely splendid analogy! It's akin to embarking on a riveting journey through the digital realm, with every twist and turn reminiscent of a ride on a rollercoaster crafted from pure digital gold.
Host 1:"Quite right! Now, let's take a delightful detour into the realm of NFTs. Have you caught wind of the latest stir caused by Tensor?"
Host 2:"Ah, Tensor? Are you referring to the NFT marketplace nestled within the Solana blockchain, perchance?"
Host 1:"Indeed! They've made quite the announcement, haven't they? The issuance of a governance token, TNSR, is certainly a bold move on their part."
Host 2:Fascinating! So, the TNSR token will serve as the governing force behind the marketplace's protocols, correct?
Host 1:"Indeed! They're certainly keeping us in suspense about the potential launch of an airdrop for this new token, aren't they?"
Host 2:The anticipation is positively palpable! And what's all this buzz about the Tensor Foundation, pray tell?
Host 1:"Ah, splendid observation! The entire suite of Tensor protocols is set to be embraced by the newly established Tensor Foundation. It's a pioneering organization wholly committed to bolstering the Tensor ecosystem."
Host 2:"Indeed, quite the bold move! Tensor has certainly been causing quite a stir, hasn't it?"
Host 1:"Quite remarkable, isn't it? Despite being launched just this year, it's already commanding a substantial 33.49% market share in the NFT trading industry."
Host 2:"Quite the rapid rise to prominence, isn't it? It's akin to being the new pupil and assuming the role of class president within the first week!"
Host 1:"Quite amusing, isn't it? They've already facilitated the trade of over $2 billion worth of Solana-based NFTs. Quite the impressive feat, I must say!"
Host 2:"Absolutely spot on! And for our esteemed listeners who may not be familiar, governance tokens such as TNSR bestow upon their holders the esteemed privilege of casting votes on alterations to blockchain-based protocols and smart contracts."
Host 1:"Indeed, one could certainly make that assertion. And when it comes to reaping rewards, it's worth noting that Tensor successfully secured a substantial $3 million in funding back in March of this year."
Host 1:"Ah, quite an astute observation! It's worth noting that those who actively engage with the protocol tend to receive more substantial allocations of the token. Quite the incentive, wouldn't you say?"
Host 1:"Absolutely! They've taken to labeling themselves as the Solana equivalent of the Blur NFT marketplace, which specifically caters to the discerning tastes of professional traders."
Host 1:"And not just art, my dear friend. NFTs have the remarkable ability to represent anything from music to virtual real estate, encapsulating a diverse spectrum of digital assets."
Host 2:"Ah, so it's akin to a reward for those esteemed patrons who have demonstrated unwavering loyalty to the establishment, wouldn't you say?"
Host 1:"Indeed! It shall be quite intriguing to witness the unfolding of this fascinating development."
Host 2:"Goodness me, that's an impressive amount of digital art changing hands, isn't it?"
Host 2:"Indeed, that's quite a vote of confidence from the investors, isn't it?"
Host 2:"Indubitably! The realm of crypto never ceases to astound us."
Host 2:"Quite the ambitious endeavor, wouldn't you say?"