Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home News Crypto

Coinbase Raises $2 Billion in Convertible Bonds After Stock Plunges 17% on Weak Q2 Results

by Team Lumida
August 6, 2025
in Crypto
Reading Time: 5 mins read
A A
0
a laptop on a table

Photo by PiggyBank on Unsplash

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Data & Insights:

Powered by lumidawealth.com

  • Massive Fundraise: Coinbase is issuing $2 billion in convertible bonds (0% coupon, due 2029 and 2032) for potential stock buybacks and debt redemption, with JPMorgan leading the deal.
  • Stock Under Pressure: Shares fell another 4% to $304.04 on the bond announcement, following last week’s 17% plunge after disappointing Q2 earnings that missed revenue estimates.
  • Revenue Miss: Q2 revenue of $1.5 billion missed $1.59 billion estimates and dropped from Q1’s $2 billion, as crypto market volatility declined and trading volumes weakened.
  • Conversion Terms: The 2029 bonds carry a 50-55% conversion premium, while 2032 bonds have a 30-35% premium, with capped call structures to limit dilution.
  • Crypto Fundraising Boom: The deal joins a wave of crypto-focused companies raising capital under Trump’s crypto-friendly administration, including MicroStrategy and GameStop’s recent convertible offerings.
  • Market Context: U.S. equity-linked securities raised $51.9 billion YTD vs. $82.6 billion in the same 2024 period, showing slower convertible market activity overall.

What’s Really Happening?

Coinbase is capitalizing on its still-elevated stock price (up 25% YTD despite recent weakness) to raise cheap capital through zero-coupon convertibles before potential further deterioration. The timing suggests management expects continued crypto market volatility challenges and wants a war chest for opportunistic share buybacks when the stock is beaten down, or to pay down expensive existing debt.

The convertible structure is particularly clever—if crypto rallies and the stock soars, bondholders convert and Coinbase gets equity financing. If crypto stays weak and the stock languishes, Coinbase keeps the $2 billion cash with no interest payments. The capped call structure limits dilution upside, making this essentially a heads-I-win, tails-I-don’t-lose financing.


What’s Really Happening?

Coinbase is executing a defensive capital raise while it still can. After missing Q2 estimates and seeing revenue drop 25% sequentially, management recognizes that crypto trading volumes are cyclical and unpredictable. The $2 billion gives them flexibility to buy back stock at lower prices (potentially boosting EPS) or reduce debt service costs, improving margins during lean periods.

The zero-coupon structure with high conversion premiums is brilliant timing—Coinbase gets free money if the stock stays weak, but if crypto rallies and the stock doubles, they’re essentially issuing equity at much higher prices than today’s levels.


Why Does It Matter?

  • For Crypto Sector: Coinbase’s defensive fundraising signals that even the largest U.S. crypto exchange expects continued market volatility and revenue pressure, potentially indicating broader sector challenges ahead.
  • For Convertible Markets: The deal demonstrates how companies are using zero-coupon convertibles as cheap insurance policies, potentially inspiring similar defensive financings across volatile sectors.
  • For Coinbase Investors: The $2 billion provides significant financial flexibility, but also suggests management expects the business to face continued headwinds that may require capital deployment to support the stock price.

What’s Next?

  • Crypto Market Dependency: Coinbase’s revenue will continue to fluctuate with crypto volatility—watch Bitcoin and Ethereum trading volumes as leading indicators for the company’s quarterly performance.
  • Capital Deployment: Monitor how aggressively Coinbase uses the proceeds for share buybacks vs. debt reduction—aggressive buybacks could signal management’s confidence in a crypto recovery.
  • Conversion Catalyst: If crypto rallies significantly and the stock hits conversion levels ($456-470 for 2029 bonds, $397-425 for 2032), massive dilution could pressure the stock despite the capped call protection.
Source
Previous Post

Rivian and Lucid Stocks Plunge as EV Tax Credit Elimination and Production Cuts Hit Struggling Sector

Next Post

Bumble Stock Falls 8% as Dating App Loses Paying Users Despite Revenue Beat and Major Restructuring

Recommended For You

Binance Aid to Trump Family Crypto Preceded CZ Pardon, Supercharging USD1

by Team Lumida
19 hours ago
Binance Aid to Trump Family Crypto Preceded CZ Pardon, Supercharging USD1

Key Takeaways Powered by lumidawealth.com Binance helped build World Liberty’s USD1 stablecoin and facilitated a $2 billion USD1-funded stake sale to Emirati investor MGX, lifting USD1’s market cap above...

Read more

Polymarket Plans US Return Within Weeks With Sports Focus

by Team Lumida
2 days ago
Polymarket Plans US Return Within Weeks With Sports Focus

Key Takeaways Polymarket preparing US return by end of November with sports betting focus; initial trading won't be broadly available. Launch would cap turnaround after being kicked offshore,...

Read more

PBOC Governor Warns on Stablecoin Risks as Global Anxiety Builds

by Team Lumida
3 days ago
Bitcoin Mining Stocks Outperform BTC in Early 2025, Network Strength Grows

Key Takeaways Powered by lumidawealth.com PBOC Governor Pan warned stablecoins fail customer ID/AML requirements, "foster market speculation," increase global financial fragility, and threaten monetary sovereignty of less-developed economies. China...

Read more

Stablecoin Payments Accelerate After U.S. Regulatory Clarity

by Team Lumida
4 days ago
Bitcoin Could Drop to $50K Before a Potential Fed-Driven Rally

Key Takeaways Powered by lumidawealth.com Stablecoin transaction volume for payments hit $10B in August, up 70% since February and more than 2x YoY. Business-to-business payments dominate at $6.4B monthly...

Read more

Tether Targets $15 Billion Profit and $500 Billion Valuation as Stablecoin Dominance Grows

by Team Lumida
6 days ago
a close up of a pile of crypt coins

Key Takeaways: Powered by lumidawealth.com Tether expects nearly $15 billion in 2025 profit, up from $13 billion last year, driven by high interest income on U.S. Treasuries. The company...

Read more

JPMorgan to Allow Bitcoin and Ether as Collateral in Crypto Push

by Team Lumida
7 days ago
Tax-Loss Harvesting Surge: JPMorgan’s $15 Billion Windfall

Key Takeaways JPMorgan will allow institutional clients to use Bitcoin and Ether as loan collateral by end-2025, relying on third-party custodian; builds on earlier move to accept crypto...

Read more

Crypto Leaders Hit Capitol Hill to Push Market Structure Bill

by Team Lumida
1 week ago
Crypto Leaders Hit Capitol Hill to Push Market Structure Bill

Key Takeaways Powered by lumidawealth.com ~12 crypto CEOs (Coinbase's Armstrong, Kraken's Ripley, Uniswap's Adams, Chainlink's Nazarov) met Senate leaders (Banking Chair Tim Scott, Schumer, Gillibrand) for ~3 hours Wednesday...

Read more

Altcoins Stuck Below Post-FTX Low as Crypto Risk Appetite Sinks

by Team Lumida
1 week ago
Altcoins Stuck Below Post-FTX Low as Crypto Risk Appetite Sinks

Key Takeaways Powered by lumidawealth.com A ~$20B Oct. 10 liquidation triggered crypto’s largest single-day washout; altcoin index of 50 smallest tokens now trades below 2022 FTX-era lows, signaling retreat...

Read more

BlackRock Is Pulling Bitcoin Whales Into Wall Street’s Orbit

by Team Lumida
1 week ago
Is BlackRock the New Leader in Alternative Investments?

Key Takeaways Powered by lumidawealth.com In-kind creations for spot Bitcoin ETFs, approved in July, let large holders swap BTC for ETF shares without a taxable sale, moving assets onto...

Read more

Coinbase Strikes Deal for Crypto-Investing Platform Echo

by Team Lumida
1 week ago
Coinbase Strikes Deal for Crypto-Investing Platform Echo

Key Takeaways Powered by lumidawealth.com Coinbase will acquire Echo for roughly $375M (cash + stock), its 8th deal in 2025, aiming to become a one-stop platform for on-chain capital...

Read more
Next Post
a room that has a couch in it

Bumble Stock Falls 8% as Dating App Loses Paying Users Despite Revenue Beat and Major Restructuring

blue and red cargo ship on sea during daytime

Global Trade Partners Scramble for Trump Tariff Exemptions as "No Exceptions" Policy Crumbles

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Workers Return to Tough Jobs: US Foods Overcomes Labor Challenges

Workers Return to Tough Jobs: US Foods Overcomes Labor Challenges

June 10, 2024
black Gucci leather shoulder bag

Luxury Brands Consider U.S. Manufacturing Amid Trade War Threats

February 5, 2025
President Donald Trump

Trump’s Bold Promise: Bitcoin to Dominate America’s Future!

July 28, 2024

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018