Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping._老虎社区_美港股上老虎

Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.

barrons2021-05-18

Cryptocurrency exchange Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...

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免责声明：本文观点仅代表作者个人观点，不构成本平台的投资建议，本平台不对文章信息准确性、完整性和及时性做出任何保证，亦不对因使用或信赖文章信息引发的任何损失承担责任。

Senasim11
·2021-05-18
Coinbase a dangerous stock to play
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arcana1975
·2021-05-18
Alot of retail investors burnt by $Coinbase Global, Inc.(COIN)$DPO.
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Milankaka
·2021-05-18
Dropping non stop from IPO, someone please save them
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2
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- WendyGoh:
  Yes
  2021-05-18
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- Milankaka:
  Ok
  2021-05-18
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- Senasim11:
  Hard to save tHem
  2021-05-18
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朝即安大
·2021-05-18
Noted
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TheCSM
·2021-05-18
Seriously 😑
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3
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Traderyt
·2021-05-18
Coinbase sounds really dodge in this article [Anger]
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KMK
·2021-05-18
Down down [难过]
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1
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Tslverde
·2021-05-18
Dropping?
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7427d960
·2021-05-18
Oh no
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daggerw
·2021-05-18
@jemmie[呆住]
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4
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- jemmie:
  long term stock!
  2021-05-18
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- daggerw:
  holdddddd [财迷]
  2021-05-18
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- jemmie:
  when will this go up...?
  2021-05-19
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FrigFragFry
·2021-05-18
$COIN is a short to $190
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bzlim
·2021-05-18
Already needing money?
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BBBBBBBBBB
·2021-05-18
What why
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3
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- PanaCota:
  ok
  2021-05-18
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Glenna
·2021-05-18
pls like and comment
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1
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- daggerw:
  done exchange
  2021-05-18
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Booooooooooo
·2021-05-18
Is this why the price has been dropping ?
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- Booooooooooo:
  Pls comment. Thanks
  2021-05-18
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- Mr小白:
  Yes
  2021-05-18
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- 请对我善良点:
  still got chance to up again?
  2021-05-18
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查看更多 2 条评论
JASLIM
·2021-05-18
Buy
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1
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- KCNG:
  👍
  2021-05-18
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FiNaLe
·2021-05-18
This doesn’t sound good.. sigh
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Sud123
·2021-05-18
Coinbase seems a little dicey. Afterall it is directly linked with Bitcoin pricing, so will have its up & downs. Better to stay away from it for now!
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Ak91
·2021-05-18
Lik n comment pls
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- RichestFoo:
  Comment back pls
  2021-05-18
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- Ak91:
  Ok
  2021-05-18
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JonC1997
·2021-05-18
Hmmm
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1
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- JonC1997:
  Good
  2021-05-18
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Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"COIN","symbol_name":"Coinbase Global, Inc.","start_time":0,"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","article_id":"1190950560","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","pubTimestamp":1621299973,"sourceInfo":{"source_id":"lsy1601382232898","name":"Barrons"},"weMediaInfo":null,"summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","collect":0,"end_time":0,"defaultTopTitle":"barrons.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"COIN":"Coinbase Global, Inc."},"translate_title":"Coinbase正在发行可转换债券。为什么它的股票在下降。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"COIN":0.9},"content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":195574283,"gmtCreate":1621304711042,"gmtModify":1634192599649,"author":{"id":"3581972561289020","authorId":"3581972561289020","name":"Senasim11","avatar":"https://static.tigerbbs.com/332d7d74927168702f2c7c17483c8a6a","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Coinbase a dangerous stock to play","listText":"Coinbase a dangerous stock to play","text":"Coinbase a dangerous stock to play","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195574283","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. 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Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195546371,"gmtCreate":1621303944493,"gmtModify":1634192608132,"author":{"id":"3574758483846724","authorId":"3574758483846724","name":"arcana1975","avatar":"https://static.tigerbbs.com/099b06891d3ff6d75d1f2c31f1387eba","vip":1,"crmLevel":8,"crmLevelSwitch":0},"htmlText":"Alot of retail investors burnt by&nbsp;<a href=\"https://laohu8.com/S/COIN\">$Coinbase Global, Inc.(COIN)$</a>DPO.","listText":"Alot of retail investors burnt by&nbsp;<a href=\"https://laohu8.com/S/COIN\">$Coinbase Global, Inc.(COIN)$</a>DPO.","text":"Alot of retail investors burnt by $Coinbase Global, Inc.(COIN)$DPO.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195546371","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195558311,"gmtCreate":1621303307333,"gmtModify":1634192617019,"author":{"id":"3579096500575753","authorId":"3579096500575753","name":"Milankaka","avatar":"https://static.tigerbbs.com/288ce834db4366c3536976047323d1ce","vip":1,"crmLevel":6,"crmLevelSwitch":0},"htmlText":"Dropping non stop from IPO, someone please save them","listText":"Dropping non stop from IPO, someone please save them","text":"Dropping non stop from IPO, someone please save them","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":3,"repostSize":0,"link":"https://laohu8.com/post/195558311","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361993,"gmtCreate":1621303338838,"gmtModify":1635406862453,"authorId":3581650882917100,"author":{"id":3581650882917100,"authorId":3581650882917100,"name":"WendyGoh","avatar":"https://static.tigerbbs.com/aeb2b50cab4602df1e5f3c2c1880a1f6","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195558311,"type":1,"supId":0,"prevId":0,"content":"Yes","text":"Yes","html":"Yes"},{"id":4362006,"gmtCreate":1621303380325,"gmtModify":1635406861020,"authorId":3579096500575753,"author":{"id":3579096500575753,"authorId":3579096500575753,"name":"Milankaka","avatar":"https://static.tigerbbs.com/288ce834db4366c3536976047323d1ce","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195558311,"type":1,"supId":4361993,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"},{"id":4362331,"gmtCreate":1621304663957,"gmtModify":1635406830088,"authorId":3581972561289020,"author":{"id":3581972561289020,"authorId":3581972561289020,"name":"Senasim11","avatar":"https://static.tigerbbs.com/332d7d74927168702f2c7c17483c8a6a","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195558311,"type":1,"supId":0,"prevId":0,"content":"Hard to save tHem","text":"Hard to save tHem","html":"Hard to save tHem"}],"langContent":"EN"},{"id":195559994,"gmtCreate":1621303169318,"gmtModify":1634192618833,"author":{"id":"3575846823269420","authorId":"3575846823269420","name":"朝即安大","avatar":"https://static.tigerbbs.com/755ede52eb92cd0b27c464c9736a0db7","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Noted","listText":"Noted","text":"Noted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195559994","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195561474,"gmtCreate":1621302315398,"gmtModify":1631891119768,"author":{"id":"3576144409995554","authorId":"3576144409995554","name":"TheCSM","avatar":"https://static.tigerbbs.com/6efc7d366993c14843b768fab99c5631","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Seriously 😑","listText":"Seriously 😑","text":"Seriously 😑","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195561474","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195561594,"gmtCreate":1621302308218,"gmtModify":1634192631735,"author":{"id":"3581500003918833","authorId":"3581500003918833","name":"Traderyt","avatar":"https://static.tigerbbs.com/eeaac5f02e2f54fdd524c92c2c82d003","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Coinbase sounds really dodge in this article [Anger]&nbsp;","listText":"Coinbase sounds really dodge in this article [Anger]&nbsp;","text":"Coinbase sounds really dodge in this article [Anger]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195561594","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195563816,"gmtCreate":1621302251535,"gmtModify":1634192632917,"author":{"id":"3582016561552186","authorId":"3582016561552186","name":"KMK","avatar":"https://static.tigerbbs.com/ef525a9485b7272e73ab442de514d467","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Down down&nbsp;[难过]&nbsp;","listText":"Down down&nbsp;[难过]&nbsp;","text":"Down down [难过]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195563816","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":195569843,"gmtCreate":1621302188582,"gmtModify":1634192633853,"author":{"id":"3556329315079497","authorId":"3556329315079497","name":"Tslverde","avatar":"https://static.tigerbbs.com/5f52f5991ed363792008cd868f78181c","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Dropping?","listText":"Dropping?","text":"Dropping?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195569843","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195582712,"gmtCreate":1621301954836,"gmtModify":1634192637619,"author":{"id":"3571016679890290","authorId":"3571016679890290","name":"7427d960","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Oh no&nbsp;","listText":"Oh no&nbsp;","text":"Oh no","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195582712","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195514735,"gmtCreate":1621301578727,"gmtModify":1634192643305,"author":{"id":"3581756393031205","authorId":"3581756393031205","name":"daggerw","avatar":"https://static.tigerbbs.com/e4157c588742934fdb76cbe005dc6ec0","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"<a href=\"https://laohu8.com/U/3581767186680148\">@jemmie</a>[呆住]&nbsp;","listText":"<a href=\"https://laohu8.com/U/3581767186680148\">@jemmie</a>[呆住]&nbsp;","text":"@jemmie[呆住]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":4,"repostSize":0,"link":"https://laohu8.com/post/195514735","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4363764,"gmtCreate":1621313580510,"gmtModify":1635406707007,"authorId":3581767186680148,"author":{"id":3581767186680148,"authorId":3581767186680148,"name":"jemmie","avatar":"https://static.tigerbbs.com/a4dec4a0576ef7e54edd75ad8197ee90","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195514735,"type":1,"supId":0,"prevId":0,"content":"long term stock!","text":"long term stock!","html":"long term stock!"},{"id":4363819,"gmtCreate":1621313903194,"gmtModify":1635406701739,"authorId":3581756393031205,"author":{"id":3581756393031205,"authorId":3581756393031205,"name":"daggerw","avatar":"https://static.tigerbbs.com/e4157c588742934fdb76cbe005dc6ec0","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195514735,"type":1,"supId":4363764,"prevId":0,"content":"holdddddd [财迷]","text":"holdddddd [财迷]","html":"holdddddd [财迷]"},{"id":4372261,"gmtCreate":1621384376817,"gmtModify":1635406052130,"authorId":3581767186680148,"author":{"id":3581767186680148,"authorId":3581767186680148,"name":"jemmie","avatar":"https://static.tigerbbs.com/a4dec4a0576ef7e54edd75ad8197ee90","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195514735,"type":1,"supId":0,"prevId":0,"content":"when will this go up...?","text":"when will this go up...?","html":"when will this go up...?"},{"id":4373286,"gmtCreate":1621387602653,"gmtModify":1635405956166,"authorId":3581761980405366,"author":{"id":3581761980405366,"authorId":3581761980405366,"name":"J288","avatar":"https://static.tigerbbs.com/f139ffb0e1f3cec014732c0986adcded","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195514735,"type":1,"supId":0,"prevId":0,"content":"<u>Hi</u>","text":"<u>Hi</u>","html":"<u>Hi</u>"}],"langContent":"CN"},{"id":195514025,"gmtCreate":1621301535767,"gmtModify":1634192644113,"author":{"id":"3555306947034569","authorId":"3555306947034569","name":"FrigFragFry","avatar":"https://static.tigerbbs.com/284aaff943abf94855baca0b6a933ecd","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"$COIN is a short to $190","listText":"$COIN is a short to $190","text":"$COIN is a short to $190","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195514025","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195515755,"gmtCreate":1621301533177,"gmtModify":1634192644233,"author":{"id":"3572436349218639","authorId":"3572436349218639","name":"bzlim","avatar":"https://static.tigerbbs.com/3b2aafaf14823285f7393917b6ff4f54","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Already needing money?&nbsp;","listText":"Already needing money?&nbsp;","text":"Already needing money?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195515755","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195519578,"gmtCreate":1621301244594,"gmtModify":1634192648570,"author":{"id":"3581562365927542","authorId":"3581562365927542","name":"BBBBBBBBBB","avatar":"https://static.tigerbbs.com/973395458d7e1db24dbd4a689c79e8a2","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"What why","listText":"What why","text":"What why","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/195519578","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4369136,"gmtCreate":1621351934698,"gmtModify":1635406304090,"authorId":3581588474178431,"author":{"id":3581588474178431,"authorId":3581588474178431,"name":"PanaCota","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195519578,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":195536318,"gmtCreate":1621300922934,"gmtModify":1634192652733,"author":{"id":"3570769377369254","authorId":"3570769377369254","name":"Glenna","avatar":"https://static.tigerbbs.com/8cb1540811be40c4d05341502c35498c","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"pls like and comment","listText":"pls like and comment","text":"pls like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/195536318","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361587,"gmtCreate":1621301591828,"gmtModify":1635406901023,"authorId":3581756393031205,"author":{"id":3581756393031205,"authorId":3581756393031205,"name":"daggerw","avatar":"https://static.tigerbbs.com/e4157c588742934fdb76cbe005dc6ec0","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195536318,"type":1,"supId":0,"prevId":0,"content":"done <u>exchange</u>","text":"done <u>exchange</u>","html":"done <u>exchange</u>"}],"langContent":"EN"},{"id":195597466,"gmtCreate":1621300695455,"gmtModify":1634192656817,"author":{"id":"3581484916070591","authorId":"3581484916070591","name":"Booooooooooo","avatar":"https://static.tigerbbs.com/77192e7418cc5ae69f989ac4732ad2cb","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Is this why the price has been&nbsp;dropping ?","listText":"Is this why the price has been&nbsp;dropping ?","text":"Is this why the price has been dropping ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":6,"repostSize":0,"link":"https://laohu8.com/post/195597466","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361334,"gmtCreate":1621300746734,"gmtModify":1635406924096,"authorId":3581484916070591,"author":{"id":3581484916070591,"authorId":3581484916070591,"name":"Booooooooooo","avatar":"https://static.tigerbbs.com/77192e7418cc5ae69f989ac4732ad2cb","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195597466,"type":1,"supId":0,"prevId":0,"content":"Pls comment.  Thanks ","text":"Pls comment.  Thanks ","html":"Pls comment.  Thanks "},{"id":4361373,"gmtCreate":1621300857163,"gmtModify":1635406920373,"authorId":3561677110311504,"author":{"id":3561677110311504,"authorId":3561677110311504,"name":"Mr小白","avatar":"https://static.tigerbbs.com/6254bbf8c65e8c668db8db59c22ae5d7","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195597466,"type":1,"supId":0,"prevId":0,"content":"<u>Yes</u>","text":"<u>Yes</u>","html":"<u>Yes</u>"},{"id":4361616,"gmtCreate":1621301708294,"gmtModify":1635406897953,"authorId":3578866938376185,"author":{"id":3578866938376185,"authorId":3578866938376185,"name":"请对我善良点","avatar":"https://static.tigerbbs.com/5515abaaba46d935312343148b97579f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195597466,"type":1,"supId":0,"prevId":0,"content":"still got chance to up again?","text":"still got chance to up again?","html":"still got chance to up again?"},{"id":4400694,"gmtCreate":1621582129907,"gmtModify":1635403727973,"authorId":3581484916070591,"author":{"id":3581484916070591,"authorId":3581484916070591,"name":"Booooooooooo","avatar":"https://static.tigerbbs.com/77192e7418cc5ae69f989ac4732ad2cb","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195597466,"type":1,"supId":4361373,"prevId":0,"content":"ThaNks ","text":"ThaNks ","html":"ThaNks "},{"id":4416502,"gmtCreate":1621732179186,"gmtModify":1635402410389,"authorId":3561677110311504,"author":{"id":3561677110311504,"authorId":3561677110311504,"name":"Mr小白","avatar":"https://static.tigerbbs.com/6254bbf8c65e8c668db8db59c22ae5d7","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":3581484916070591,"repliedAuthor":{"id":3581484916070591,"authorId":3581484916070591,"name":"Booooooooooo","avatar":"https://static.tigerbbs.com/77192e7418cc5ae69f989ac4732ad2cb","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":195597466,"type":1,"supId":4361373,"prevId":4400694,"content":"oh <u>no</u>","text":"oh <u>no</u>","html":"oh <u>no</u>"}],"langContent":"EN"},{"id":195592442,"gmtCreate":1621300529886,"gmtModify":1634192659421,"author":{"id":"3569395672897883","authorId":"3569395672897883","name":"JASLIM","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Buy","listText":"Buy","text":"Buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/195592442","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361308,"gmtCreate":1621300667021,"gmtModify":1635406926502,"authorId":3564539038897071,"author":{"id":3564539038897071,"authorId":3564539038897071,"name":"KCNG","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195592442,"type":1,"supId":0,"prevId":0,"content":"👍","text":"👍","html":"👍"}],"langContent":"EN"},{"id":195596352,"gmtCreate":1621300480376,"gmtModify":1634192660602,"author":{"id":"3580948065391295","authorId":"3580948065391295","name":"FiNaLe","avatar":"https://static.tigerbbs.com/19cf41fbd46d9787d9b74e9829c0c5f4","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"This doesn’t sound good.. sigh","listText":"This doesn’t sound good.. sigh","text":"This doesn’t sound good.. sigh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195596352","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195598390,"gmtCreate":1621300459910,"gmtModify":1634192661557,"author":{"id":"3582669260096336","authorId":"3582669260096336","name":"Sud123","avatar":"https://static.tigerbbs.com/bc1a5612accc650c132766cc78482ffa","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Coinbase seems a little dicey. Afterall it is directly linked with Bitcoin pricing, so will have its up &amp; downs. Better to stay away from it for now!","listText":"Coinbase seems a little dicey. Afterall it is directly linked with Bitcoin pricing, so will have its up &amp; downs. Better to stay away from it for now!","text":"Coinbase seems a little dicey. Afterall it is directly linked with Bitcoin pricing, so will have its up & downs. Better to stay away from it for now!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/195598390","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195593351,"gmtCreate":1621300370473,"gmtModify":1634192663212,"author":{"id":"3573276404004652","authorId":"3573276404004652","name":"Ak91","avatar":"https://static.tigerbbs.com/0578c6f4e6345562f2d636b87cc2b9fd","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Lik n comment pls","listText":"Lik n comment pls","text":"Lik n comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/195593351","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361260,"gmtCreate":1621300461583,"gmtModify":1635406931001,"authorId":3581505873268125,"author":{"id":3581505873268125,"authorId":3581505873268125,"name":"RichestFoo","avatar":"https://static.tigerbbs.com/443e60b58fbb591e5a075eb182f9aae2","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195593351,"type":1,"supId":0,"prevId":0,"content":"Comment back <u>pls</u>","text":"Comment back <u>pls</u>","html":"Comment back <u>pls</u>"},{"id":4361279,"gmtCreate":1621300526942,"gmtModify":1635406929357,"authorId":3573276404004652,"author":{"id":3573276404004652,"authorId":3573276404004652,"name":"Ak91","avatar":"https://static.tigerbbs.com/0578c6f4e6345562f2d636b87cc2b9fd","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195593351,"type":1,"supId":4361260,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"},{"id":195590550,"gmtCreate":1621300301270,"gmtModify":1634192664711,"author":{"id":"3581841381174598","authorId":"3581841381174598","name":"JonC1997","avatar":"https://static.tigerbbs.com/3b36205562e7be603067005666045365","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Hmmm","listText":"Hmmm","text":"Hmmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/195590550","repostId":1190950560,"repostType":4,"repost":{"id":"1190950560","pubTimestamp":1621299973,"share":"https://www.laohu8.com/m/news/1190950560?lang=&edition=full","pubTime":"2021-05-18 09:06","market":"us","language":"en","title":"Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.","url":"https://stock-news.laohu8.com/highlight/detail?id=1190950560","media":"barrons","summary":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond ","content":"<p>Cryptocurrency exchange&nbsp; Coinbase Global&nbsp;surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.</p>\n<p>Coinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.</p>\n<p>There are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.</p>\n<p>And when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.</p>\n<p>Dilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.</p>\n<p>Coinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.</p>\n<p>But there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”</p>\n<p>A capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?</p>\n<p>Coinbase referred <i>Barron’s</i> to its news release when asked about details of the convertible offering.</p>\n<p>Coinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The&nbsp;S&amp;P 500&nbsp;and&nbsp;Dow Jones Industrial Average,by comparison, are both up a little over the same span.</p>\n<p>Now, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoinbase Is Issuing a Convertible Bond. Why Its Stock Is Dropping.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 09:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2><strong>barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard ...</p>\n\n<a href=\"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://www.barrons.com/articles/coinbase-is-issuing-a-convertible-bond-why-its-stock-is-dropping-51621288490?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190950560","content_text":"Cryptocurrency exchange  Coinbase Global surprised investors Monday evening with a convertible bond offering that raises several new questions for investors—including one that investors haven’t heard about before in prior company filings. More questions mean more uncertainty, and investors hate uncertainty. Coinbase shares are falling as a result.\nCoinbase (ticker: COIN) is raising about $1.3 billion in a convertible bond sale. Shares are down about 2.6% in after-hours trading.\nThere are a few reasons the stock is weak. For starters, Coinbase is selling convertible bonds and, as their name implies, the bonds can be converted into stock, under certain conditions. More stock is dilutive to existing shareholders.\nAnd when a convertible bond is issued, arbitrage traders oftentimes will buy the convertible bond and short the company stock, essentially locking in a yield they find attractive. Shorting a stock generates selling pressure, and a stock can fall in the immediate aftermath of a convertible sale.\nDilution and arbitrage aside, investors might also be questioning the timing of this bond sale. The offering comes about a month after the company completed its direct stock listing. Coinbase didn’t pursue a traditional initial public offering because, presumably, it didn’t need the cash. The company generates positive cash flow, is growing rapidly, and analysts are upbeat about earnings prospects. So why raise money now? And why with a bond? Those questions don’t really have answers yet.\nCoinbase, around the time of its direct listing, did say a direct listing was more in keeping with the ethos of cryptocurrencies. IPOs are run by large banks, which typically reward their best customers. That’s one potential answer to why now and why a bond.\nBut there is one other question raised by the offering. The news release says the purpose of the offering is to strengthen the company’s balance sheet. The cash will be used for “general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.”\nA capped call is a call option trade that limits the call buyer’s upside. A traditional call option gives the buyer the right to buy something at a fixed price. The gain is theoretically limitless. The capped call just has a cap. Capped calls don’t show up in a search of the company’s prospectus. The capped call is most likely to limit the dilution of the offering by limiting the number of shares issued. If that’s the case, then why not just issue a smaller bond with less dilution and no cash paid for capping dilution?\nCoinbase referred Barron’s to its news release when asked about details of the convertible offering.\nCoinbase listed its shares for trading at $250. The stock closed at about $328 the first day but have since fallen 24% to just below $248.24. The S&P 500 and Dow Jones Industrial Average,by comparison, are both up a little over the same span.\nNow, Coinbase stock is down 2.6% at $241.75 in after-hours trading. Don’t be surprised if it remains weak until some of these questions are answered.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4361236,"gmtCreate":1621300320503,"gmtModify":1635406933509,"authorId":3581841381174598,"author":{"id":3581841381174598,"authorId":3581841381174598,"name":"JonC1997","avatar":"https://static.tigerbbs.com/3b36205562e7be603067005666045365","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195590550,"type":1,"supId":0,"prevId":0,"content":"Good","text":"Good","html":"Good"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":71,"commentSize":21,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}