The U.S. crypto exchange Coinbase has announced that it will be offering its senior notes, worth $1.5 billion in its first private offering.

The senior notes will be due in 2028 and 2031 and will be “fully and unconditionally guaranteed by Coinbase, Inc.”

According to a statement, the interest rate, redemption provisions, and other terms of each series of notes will be determined by negotiations between Coinbase and the initial purchasers.

“This capital raise represents an opportunity to bolster our already-strong balance sheet with low-cost capital,” the statement read.

In the last 24 hours, bitcoin is down by 0.16%, with a current price of $44,200 as at the time of writing this. Within 24 hours, bitcoin dropped to $50,577.41 low and $46,417.10 high. The trading volume of bitcoin in the last 24 hours is $789.27M. The current market capitalization of bitcoin is $861.28B. Currently, $18.81M bitcoins is in circulation.

Stats and Image from Coin Desk

Coinbase added that the net proceeds raised from the offering will be utilized for general corporate purposes and potential investments.

A senior note is a form of bond that prioritizes other debts if the company goes bankrupt and has to liquidate. Senior notes pay lower interest rates than junior bonds because they are less risky.