Capital is on the move. The following is a brief look at the details behind Coppers recent successful Series B, and a proposal for the issuance of senior convertible notes by Coinbase.
Copper
With participation from various VC firms, custodial specialist, Copper, was able to draw in $50M in funding in the company’s Series B. This highlights a period of strong growth at Copper, as it builds on a previously successful Series A, which saw the company bring in $8M at the time.
As adoption of digital assets among institutional investors continues to grow, a need for custodial offerings follows suit. As a result, players in the digital assets sector have shown a clear appetite for supporting companies such as Copper.
In this most recent round of funding, the following companies led the way in participation.
- Target Global
- Dawn Capital
- Illuminate Financial
Notably, Target Global has taken part in each of the aforementioned funding rounds.
Much like after its Series A, the plan moving forward for Copper after this most recent round is largely based upon international expansion. Despite noting revenue and client base tripling in recent months, Copper also plans to double the size of its team before 2022 comes to a close.
Another recent example of investor interest in custodial offerings was Anchorage, and its ability to recently bring in $80M worth of funding in its own Series C.
Coinbase
While Copper wraps up its most recent round of funding, Coinbase is just gearing up to bring in a fresh batch of its own. As one of the worlds most popular service providers for digital assets, growth at Coinbase continues unabated.
In this particular offering, Coinbase is looking to sell $1.25B worth of debt securities in the form of a senior convertible note. When addressing its reasoning for this issuance, Coinbase states,
“This capital raise represents an opportunity to bolster Coinbase’s already strong balance sheet with low cost capital that maintains operating freedom and minimizes dilution for Coinbase’s stockholders. Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.
If the initial purchasers exercise their option to purchase additional notes, Coinbase expects to use a portion of the net proceeds from the sale of such additional notes to enter into additional capped call transactions. Coinbase may also use a portion of the net proceeds to make investments in and acquisitions of other companies, products or technologies that Coinbase may identify in the future.”
For those intrigued at the idea of this, do not get too excited. Access to the notes is restricted to qualified institutional buyers. Those that do take part, will see the notes mature in 2026. Until then, they will represent ‘senior, unsecured obligations of Coinbase’ which will accrue interest semi-annually.
Upon maturation, Coinbase indicated that the notes ‘will be convertible into cash, shares of Coinbase’s Class A common stock, or a combination thereof, at Coinbase’s election’.