Coinbase Stock Is Moving Lower: What's Going On?

Shares of crypto exchange Coinbase Global Inc COIN were trading lower after the market close on Tuesday after the company announced a proposed private offering.

What Happened: Coinbase said it intended to offer $1 billion worth of Convertible Senior Notes due 2030 in a private offering to institutional buyers. The company also expected to grant the initial purchasers a 30-day window to purchase up to an additional $150 million of the notes.

The net proceeds from the offering will be used to repay at maturity, or repurchase or redeem prior to maturity, its outstanding 0.50% Convertible Senior Notes due 2026, 3.375% Senior Notes due 2028 and 3.625% Senior Notes due 2031.

Coinbase also planned to use some of the proceeds for general corporate purposes. The company noted it may use some remaining proceeds to make investments in and acquisitions of other companies, products or technologies from time to time.

Separately, Coinbase CEO Brian Armstrong and other top executives at the company reported recent sales of Coinbase shares in new regulatory filings with the SEC. Armstrong sold several blocks of shares on March 8 at prices ranging from $250 to $270.43 per share. According to CNBC, Armstrong sold approximately $64 million worth of Coinbase shares in total.

COIN Price Action: Coinbase shares were up approximately 47% year-to-date. The stock was down 2.80% after hours at $248.98 at the time of publication Tuesday, according to Benzinga Pro.

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Photo: Courtesy of Coinbase