Coinbase Global (COIN) is set to take advantage of the rally in the cryptocurrency market this year as the crypto exchange announced plans to raise $1 billion through the sale of senior convertible notes.

The notes will be sold to institutional investors in a private offering, and are set to mature in 2030, the biggest and only publicly traded U.S. crypto exchange announced Tuesday.

Cryptocurrencies like bitcoin have surged in the first three months of 2024 as investment options for the digital currency have grown, with bitcoin repeatedly setting record-high prices, surpassing $72,000 earlier this week.

Convertible notes are a common form of fundraising that allows a business access to cash without immediately giving up equity or diluting current shareholders by picking a point in the future at which time the notes can be converted to cash or shares of the issuing company's stock.

They are also chosen because issuing new shares and diluting existing shareholders can hurt a company's stock price. Companies also often choose bull markets as a time to raise funds to take advantage of existing investor enthusiasm.