Coinbase's $1B Convertible-Debt Deal: Navigating Stock Impact and Emulating Bitcoin Strategy

Coinbase plans to raise $1 billion through a convertible debt offering, following the playbook of Michael Saylor's MicroStrategy. The offering includes a provision for "negotiated capped call transactions" to minimize dilution at conversion. This move comes after a significant rally in bitcoin and a surge in Coinbase's stock price. By tapping the debt market instead of selling new shares, Coinbase aims to fund its crypto business without negatively impacting its stock price. Wall Street analysts have also shifted from a bearish stance on the stock, with some upgrading their outlook due to the rally in digital asset markets.