Why Coinbase stock just dropped in after hours trading

© Reuters

Coinbase (NASDAQ:) Global stock fell about 4% in after-hours trading Tuesday after the company announced that it plans to sell $1 billion worth of special bonds that can be turned into cash or stock in 2030, aiming this sale at big-time investors. 

Coinbase is also considering selling an extra $150 million of these bonds if there’s a lot of interest. These bonds don’t have any collateral backing them and will pay interest twice a year until they’re due in 2030. 

They can be exchanged for cash, Coinbase stock, or a mix of both, depending on what Coinbase decides. 

“The interest rate, initial conversion rate, and other terms of the notes are to be determined upon pricing of the offering,” the company said in a filing.

Coinbase stock closed at $256.14 on Tuesday.

By Senad Karaahmetovic