Coinbase slumps amid announcement of $2 billion fundraise, second-ever Base outage
The crypto exchange is down over 19% in the past week.
Coinbase, the largest US crypto exchange, suffered a outage on Base, its ethereum layer 2 network, and halted operations for 29 minutes due to an “unsafe head delay.”
“We are aware that some users may be experiencing delayed sends and receives for assets on the Base network. Buys, Sells, and Fiat withdrawals/deposits are not affected. We are investigating this issue and will provide an update shortly,” Coinbase posted on its website.
Base suffered its first outage in September 2023, for 43 minutes.
Coinbase also announced today it will raise $2 billion through a convertible senior note offering for “qualified institutional investors.” Half of the offering is due in 2029, and the other half is due in 2032.
It will partly use some of the proceeds “for general corporate purposes, which may include working capital, capital expenditures, and investments in and acquisitions of other companies, products or technologies that Coinbase may identify from time to time.”
Shares were down almost 4% in early trading.
Coinbase reported second-quarter earnings last week, missing revenue expectations. The stock sank post-earnings and has dropped over 19% in the past seven days.
