Coinbase has announced plans to raise $2 billion by issuing convertible senior notes to qualified institutional buyers, according to a statement released on Aug. 5.

The offering consists of two separate tranches: $1 billion in notes due 2029 and $1 billion in notes due 2032. These will be sold privately to institutional investors who meet specific qualification criteria.

Offering details

Coinbase stated that the initial purchasers of the notes will have a 13-day option to buy up to an additional $150 million of the 2029 and 2032 notes.

These notes are unsecured senior obligations that will accrue interest paid semi-annually. The 2029 notes will mature on Oct. 1, 2029, and the 2032 notes on Oct. 1, 2032, unless they are repurchased, converted, or redeemed before these dates.

The notes will be convertible into a mix of cash and Coinbase’s Class A common stock, at the company’s discretion. The specific terms, including the interest and initial conversion rates, will be determined when the offering is priced.

Coinbase has also structured capped call transactions for both series of notes, which are designed to minimize any dilution to its Class A shares when the notes are converted. These transactions aim to offset any additional cash payments the company may need to make beyond the converted note’s principal amount, subject to certain limits.

A portion of the net proceeds from the offering will be used to fund the capped call transactions. If the purchasers exercise their options to buy additional notes, Coinbase plans to use some of the additional proceeds to enter into further capped call agreements.

The remainder of the funds raised will be used for general corporate purposes, which may include working capital, capital expenditures, and investments in other companies or technologies.

Additionally, Coinbase may use part of the proceeds to repurchase its Class A common stock shares or repay its outstanding notes as market conditions allow.

Coinbase stock falls

According to Yahoo Finance data, Coinbase’s stock price fell by more than 2% during pre-market trading in response to the announcement. This decline came as part of the mixed reaction to the exchange’s recent quarterly earnings report, which failed to meet analyst expectations.

Compass Point analysts downgraded Coinbase’s stock from “Neutral” to “Sell,” citing growing competition from stablecoins and investor fatigue as key challenges for the company.

Additionally, they lowered their price target for Coinbase from $330 to $248 following a weaker-than-expected revenue performance in Q2.

On the flip side, Benchmark analysts expressed optimism about Coinbase’s prospects. They reiterated their “Buy” rating and raised their target price to $421, noting the company’s expanding services and influence in the institutional crypto sector.

Mentioned in this article

Swedish health technology company H100 Group has received 144.8 BTC as part of a settlement related to the convertible loan agreement, according to a company’s press release issued Monday. With this latest deal, the Stockholm-based company holds a total of 169.2 BTC on its balance sheet.

144.8 BTC was transferred as part of the first four segments of the H100 loan agreement. This has been well received by investors up until now. In its release, H100 Group AB (“H100 Group” or “Company”) received 144.8 BTC as part of tranches 1-4 revenues under the previously announced convertible loan agreement.”

This follows a recent report that Blockstream CEO Adam Back has pledged to lead H100’s 750 million Kronor (~$79 million) funding initiative. Fixed with 150 million Krona injections in Tranche6.

The loan structure includes the flexibility of either cash or Bitcoin settlements. This will allow counterparties to choose BTC delivery, reduce Fiat friction and line up with the company’s long-term finance ministry’s outlook.

“Unexpectedly, given the strong reception, Tranche 1-4 quickly became money,” Buck told Koindsk. “(H100) expected them to convert over time when they reached their status in money.”

This financing approach allows the H100 to bypass traditional rights issues while carrying capital in a flexible way. Tranches 7 and 8 are on deck, with more room for size depending on the appetite of the market.

This also reflects the evolving financial strategy of the H100. While the company’s core business continues to focus on AI-driven health and longevity services, Bitcoin’s growth position is reshaping the way it raises, stores and deploys capital. As of now, the company’s BTC Holdings is 169.2 BTC from just 24.41 BTC prior to this latest tranche execution.

H100 shares rose 22% on Monday in response to developments.

The company is uniquely positioned at the intersection of health technology and decentralized finance as it continues to negotiate with future tranches and explores adoption of BTC as the backbone of finance.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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June 14, 2025

GameStop has increased its convertible note offering to $2.25 billion, up from the $1.75 billion announced earlier this week, according to a Thursday evening press release.

The move comes just months after a similar $1.5 billion raise in April and follows the company’s recent entry into Bitcoin.

Shares of the Texas-based retailer dropped 24% over the past week, closing Friday at $22.14, despite holding steady after the announcement.

GameStop’s Zero-Coupon Notes Come with 32.5% Conversion Premium

The notes, which bear no interest, carry a conversion price of around $28.91 per share — a 32.5% premium over the stock’s Thursday afternoon average.

The structure mirrors the strategy employed by MicroStrategy, which has used premium note offerings to expand its Bitcoin holdings without immediate dilution.

GameStop first disclosed it had purchased 4,710 Bitcoin in March, pushing the stock above $28 at the time. Whether the company plans to expand its crypto reserves remains uncertain.

CEO Ryan Cohen has made it clear that GameStop won’t emulate other firms or signal its buying patterns. In a recent interview, he declined to say whether more BTC purchases were planned.

The press release kept options open, stating that proceeds would be used for “general corporate purposes,” including investments aligned with GameStop’s investment policy and “potential acquisitions.”

While vague, the language leaves the door open for further digital asset moves.

GameStop’s previous crypto ventures have been mixed. The company launched an NFT marketplace during the last market cycle but shut it down early last year.

At its annual shareholder meeting, Cohen pivoted focus toward trading cards—now making up nearly 30% of quarterly revenue.

“We’re focusing on trading cards as a natural extension of our existing business,” he said.

With capital in hand and crypto already on its books, GameStop could revisit Bitcoin when market conditions align.

223 Companies Hold Bitcoin

A growing list of firms is embracing Bitcoin as a balance sheet hedge or strategic investment. Recent data shows 223 public companies now hold Bitcoin, up from 124 just days earlier.

In total, more than 819,000 BTC, approximately 3.9% of the total supply, is currently held by public firms, according to BitcoinTreasuries.NET.

MicroStrategy remains the largest corporate Bitcoin holder, with 580,250 BTC worth approximately $60.9 billion.

Other major holders include Marathon Digital Holdings and Tesla, both with over $1 billion in Bitcoin.

Last week, Japanese investment firm Metaplanet unveiled an ambitious new target to amass 210,000 Bitcoin by the end of 2027.

As reported, digital asset companies are flooding capital markets to raise funds for large-scale Bitcoin acquisitions, spurred by the cryptocurrency’s rally to a record $111,965 last week.

The surge, up more than 50% from early April, has ignited a wave of listings and mergers as firms race to secure funding while investor appetite remains strong.

Classover, a K-12 education company, has announced a move into crypto through the creation of a Solana reserve.

The company plans to issue up to $500 million in senior convertible notes, with 80% of the proceeds allocated to purchasing Solana (SOL). The move follows a growing pattern of companies expanding into crypto-related strategies along with their core businesses.

According to a June 2 announcement, Classover has already purchased 6,472 SOL worth approximately $1.1 million to start its reserve. The issuance of $500 million in convertible notes comes through a partnership with Solana Growth Ventures.

Classover is an online education company offering learning courses for K-12 students worldwide. On June 3, a day after the announcement, its shares reached $5.45 on the Nasdaq, an intraday rise of 46.5% at the time of publication.

According to the company, the issuance of up to $500 million in convertible notes could be complementary to Classover’s $400 million equity purchase agreement. Combined, these two financing methods would bring the company’s Solana purchasing power to $900 million.

Related: DeFi Development Corp adds $11.5M SOL, shares jump 12%

Solana reserve companies

Classover’s pivot to a Solana reserve company marks a trend of some publicly traded companies turning to SOL to create more revenue streams and spark investor interest.

In May, SOL Strategies, a publicly traded Canadian company, sought regulatory permission to raise up to $1 billion for its SOL staking operations. The company’s Q2 2025 earnings report revealed a rise in validator and staking revenue.

Upexi, also listed on the Nasdaq, saw its shares soar 630% after it announced a $100 million raise in April, with 90% of the funds pledged to SOL purchases.

Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge

]]> https://earlybirdsinvest.com/classover-signs-500m-convertible-note-deal-for-solana-reserve/feed/ 0 39950 https://earlybirdsinvest.com/gamestop-targets-crypto-1b-in-convertible-senior-notes-for-bitcoin-purchase/ https://earlybirdsinvest.com/gamestop-targets-crypto-1b-in-convertible-senior-notes-for-bitcoin-purchase/#respond Thu, 27 Mar 2025 06:56:26 +0000 https://earlybirdsinvest.com/gamestop-targets-crypto-1b-in-convertible-senior-notes-for-bitcoin-purchase/ GameStop, the video game retail company, experienced a significant downturn in its stock (GME) price, sliding more than 8% in after-hours trading on Wednesday, following the announcement that the company plans to raise $1.3 billion to invest in Bitcoin (BTC) through the issuance of convertible senior notes. 

This move comes just a day after GameStop shares surged nearly 12% when the company revealed that its board had unanimously approved an update to its investment policy, designating Bitcoin as a treasury reserve asset.

GameStop Planned Bitcoin Investment

The planned investment in Bitcoin follows a recent trend of GameStop exploring cryptocurrency ventures. Reports surfaced about a month ago indicating that the company was considering investments in the digital currency space. 

Speculation intensified on February 8 when GameStop CEO Ryan Cohen shared a social media post featuring a photo with Michael Saylor, the CEO of Strategy (MSTR), a company renowned for its substantial Bitcoin holdings, which exceed 447,000 BTC tokens.

Saylor’s strategy of heavily investing in Bitcoin has proven fruitful, with MicroStrategy’s stock appreciating over 84% in the past year, largely in tandem with rising Bitcoin prices. However, Wall Street analysts remain cautious about GameStop’s ability to replicate this success. 

Skepticism From Wall Street Experts

“The company’s strategy, which has changed about six times in three years, is they’re going to buy cryptocurrency and be just like MicroStrategy,” noted Wedbush analyst Michael Pachter. 

Pachter further expressed skepticism about the effectiveness of this approach, particularly given Strategy trades at roughly two times its Bitcoin holdings. Pachter added, “If GameStop were to buy all Bitcoin with their $4.6 billion in cash and trade at two times their Bitcoin holdings, the stock would drop five bucks.”

Additionally, GameStop reported its fourth-quarter earnings results after the market closed on Tuesday, revealing $1.28 billion in net sales for the quarter—a 28% decline compared to the same period last year. 

For the full fiscal year, the company posted an adjusted EBITDA of $36.1 million, a decrease from $64.7 million reported the previous year.

Experts’ concerns may also be stemming from Bitcoin’s volatility, which saw a more than 25% retracement from its record high of $109,000 reached during the broader market rally in January. 

This developed into a drop toward the $76,000 mark on March 11th, a level not seen since November 2024. However, the market’s leading crypto has recovered to around $87,477 at the time of writing, reflecting a 4.5% increase in the fourteen-day time frame.

Featured image from DALL-E, chart from TradingView.com