Coinbase (COIN) plans to copy MicroStrategy’s (MSTR) BTC playbook and sell $1 billion in bonds that won’t hurt equity investors.

Issuers use this hedge with convertible bonds to avoid dilution to existing shareholders if the stock price rises above the conversion price, despite having to pay a fee. During its massive rally, fitness company Peloton famously raised $1 billion in convertible debt, including a 2021 capped call option. “The capped call transaction will initially include the number of shares of Coinbase’s Class A common stock that will initially underlie the Notes, subject to customary adjustments,” Coinbase said.