Coinbase to Raise $2B via Convertible Note Sale

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Good Morning.

Market structure is evolving, and the lines between crypto and legacy finance are starting to blur.

In Today's Email:

• What Matters: Coinbase to Raise $2B via Convertible Note Sale 👀 

• Case Study: SEC Eases Stablecoin Accounting Rules 🔎 

• Governance & Features: Binance Launches ALLUSDT Index Futures 🚀 

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WHAT MATTERS

Coinbase to Raise $2B via Convertible Note Sale

State of play: Coinbase plans to raise $2B through a private offering of convertible senior notes, split evenly between 2029 and 2032 maturities, with an option for an additional $300M.

• The move comes after a weak Q2 earnings report that showed a drop in revenue and rising expenses, leading to a 15% slide in COIN shares.

• The notes will be offered to institutional investors under Rule 144A and will be convertible into cash, Class A shares, or a mix at Coinbase’s discretion.

• The company will also use part of the proceeds for capped call transactions to limit dilution risk and the rest for general corporate.

• Coinbase may use funds to repurchase or redeem its existing 2026, 2028, 2030, and 2031 notes.

• In Q2, Coinbase bought 2,509 BTC worth about $222M, boosting its total to 11,776 BTC and re-entering the top 10 public holders of BTC.

Why it matters: Coinbase is raising capital to stay flexible amid revenue pressure and rising competition, signaling cautious optimism despite market headwinds.

Our take: Convertible notes give Coinbase room to maneuver without immediate dilution, but the move also highlights cash flow concerns after a shaky Q2.

For builders and investors: Watch how major platforms manage downturns. Strong treasuries and strategic capital moves can separate long-term players from short-lived hype.

CASE STUDY

SEC Eases Stablecoin Accounting Rules

The US Securities and Exchange Commission (SEC) has released updated staff guidance that may allow USD-pegged stablecoins to be treated as cash equivalents on corporate balance sheets.

• This classification depends on whether the stablecoins have guaranteed redemption mechanisms and maintain consistent value backing.

• The update is part of SEC Chair Paul Atkins’s broader agenda to modernize crypto regulation through initiatives like Project Crypto.

• The initiatives aim to bring traditional financial markets on-chain.

It follows earlier guidance from April, where the SEC clarified that certain USD-backed stablecoins are not considered securities and that entities handling their issuance or redemption don't need to register those activities.

• Bernstein analysts have called the move an unprecedented step in US crypto regulation.

• It signals a potential shift toward more mainstream financial treatment of stablecoins.

• The shift could have major implications for their use in accounting, corporate treasuries, and broader digital asset infrastructure.

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INSIGHTS

Trump to Sign Order Targeting Crypto Debanking

President Trump is set to sign an executive order targeting banks that deny services to crypto firms or individuals based on political bias.

• The draft order directs regulators to investigate potential violations of credit and consumer protection laws and threatens penalties for debanking.

• It also pushes agencies to roll back policies tied to “Operation Choke Point 2.0.”

• The move follows industry complaints that banks, under the previous administration, unfairly cut ties with crypto companies.

FEATURES & GOVERNANCE UPDATE

Binance Launches ALLUSDT Index Futures

Binance will launch its new ALLUSDT composite index futures contract on August 6, offering up to 75x leverage.

• The contract tracks all USDT-quoted perpetual futures on Binance Futures (excluding ETHBTC, USDC pairs, and non-USDT contracts) and settles in USDT.

• The index rebalances daily and is designed to simplify broad exposure or hedging strategies without managing multiple positions.

• This move comes as Binance Futures volume hit a seven-month high of $2.55T in July, signaling renewed activity in derivatives trading.

• The ALLUSDT contract targets systematic traders looking for efficient access to the platform’s entire USDT-margined futures market.

Other notable feature updates:

• Binance launched RWUSD.

• Pendle is now live on HyperEVM.

• MetaMask introduced Stablecoin Earn.

• Aave has launched Ethena Liquid Leverage.

• Jupiter Pro released Launchpad Screener v2.

• Celestia's Lotus upgrade is now live on Mainnet Beta.

• Linea unveiled a major upgrade to its Layer 2 ecosystem.

QUICK BITES

• Spot Ethereum ETFs log $465M in largest daily outflow.

• Galaxy Digital explores tokenizing its own GLXY shares.

• CEA Industries closes $500M raise to launch BNB treasury strategy.

• Coinbase plans to raise $2B through private convertible note offering.

• Trump to sign executive order threatening penalties for crypto debanking.

• SEC declares liquid staking is outside of securities laws in latest guidance.

• China warns Worldcoin-style data collection poses national security threat.

• BitBridge to go public as BTC treasury firm and launch BTC-backed loans.

• Changpeng Zhao seeks dismissal of FTX estate's $1.76B clawback lawsuit.

• Pump.fun reclaims top spot over LetsBonk in 24-hour memecoin launches.

• SharpLink buys 83,561 ETH for $304M, taking total holdings to 521,939 ETH.

• Binance unveils ALL composite index futures tracking USDT-quoted contracts.

NOTEWORTHY READS & MEME

• PvpTrade’s read on The Story of Rektober.

• Kyle’s read on the economics of perp dexes vs launchpads.

• Icobeast’s read on Things I wish I knew when I started Crypto.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.