Coinbase plans to issue billions in bonds

US crypto exchange Coinbase wants to raise one billion US dollars using convertible bonds. This is according to an announcement made by the company on Tuesday. The bonds will have a maturity of six years (2030) and give buyers the right to convert the bond into "cash, Class A shares or a combination of both."

The company plans to use the proceeds for "general corporate purposes." These include "investments in and acquisitions of companies, products or technologies that Coinbase identifies from time to time."

The statement immediately sparked speculation in the crypto space that Coinbase might use some of the proceeds to buy Bitcoin (BTC).

Just last week, MicroStrategy announced plans to raise US$600 million in a similar way. Michael Saylor's tech company wants to use this to fund further Bitcoin investments.

MicroStrategy is one of the largest institutional Bitcoin hodlers in the world and currently holds 193,000 BTC worth more than $6 billion.