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Stock Alert: Coinbase Declines 9%; Prices $1.25-bln Sr. Notes

Shares of Cryptocurrency exchange Coinbase Global, Inc. (COIN) are down more than 9% Wednesday morning.

The company today announced pricing of $1.25 billion Convertible Senior Notes due 2026, which will accrue interest of 0.50%.

The notes, which will mature on June 1, 2026, will be convertible at an initial conversion rate equivalent to $370.45 per share, a 55% premium to the closing price of $239 as on May 18.

Coinbase intends to use the net proceeds of about $1.22 billion from the offering for general corporate purposes, including $78.4 million to pay the cost of the capped call transactions.

Meanwhile, Bitcoin plummeted to a 14-week low after China reiterated that digital tokens or cryptocurrencies cannot be used as a form of payment. Bitcoin dropped to below $35,000, the lowest level since February.

COIN, currently at $215.48, has been trading in the range of $208- $429.54 in the last one year.

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