Crypto exchange Coinbase is raising a little spending money — just $2 billion — in convertible notes.
Sure, we hear this kind of thing a lot when it’s Bitcoin and Ethereum treasuries. But the San Francisco-based company said this raise will be used for “general corporate purposes” and “acquisitions of other companies, products, or technologies.”
The announcement landed right after some analysts (not all), decided they didn’t like the look of that 25% revenue drop in Q2.
Compass Point moved COIN from the Neutral to Sell column, saying that the revenue miss was confirmation that the company’s retail trading business is “getting disrupted” by decentralized exchanges and ETFs.
That could help explain why Coinbase just rolled out decentralized exchange trading in its app for its U.S. users.
Coinbase to Raise $2B in Convertible Notes as COIN Sags in Pre-Market Trading
More worrying, though, was the fact that subscriptions and services didn’t have more to contribute, the analysts said. That’s the line item that covers the premium Coinbase One memberships, stablecoin revenue, staking, and custody services.
With the presidential ink dry on the stablecoin-regulating GENIUS Act, USDC issuer Circle a few months into its tenure as a publicly traded company (remember, they have a revenue sharing deal), and the proliferation of digital asset treasuries — analysts were expecting that segment to overperform.
One of Bitcoin miner Core Scientific’s top investors wants to cut the music on the Core fusion dance.
Two Seas Capital, Core Scientific’s largest active shareholder with a 6.3% stake, intends to vote against a $9 billion all-stock sale to CoreWeave, saying in a press release Thursday that the offer represents an “inadequate valuation.”
The firm said it has established such a large stake in Core Scientific because it believes it’s a strong contender to build “critical, high-performance computing infrastructure at scale” — the infrastructure very much needed to power the artificial intelligence boom.
Two Seas, which is also an investor in CoreWeave, said the structure of the deal shortchanges CORZ investors and leaves them absorbing volatility from CRWV.
Core Scientific’s Top Investor to Vote Against CoreWeave’s ‘Inadequate’ $9B Takeover
“In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders,” the firm added, chiding the board for not entertaining offers from other suitors.
