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Twitter to Borrow as Much as $1.5 Billion

Twitter is offering as much as $1.5 billion in convertible notes to private investors in an attempt to stock up on cash, according to a Securities and Exchange Commission document filed Wednesday. Twitter, which had roughly $2 billion in the bank following its latest earnings announcement in August, could come close to doubling that amount with Wednesday’s move. A company spokesperson declined to comment on what, specifically, the money would be used for, but it’s possible Twitter could use the funds to make another acquisition in the near future. (Twitter has made more than a dozen acquisitions over the past two years.)

Other tech companies, including Google and Netflix, have also borrowed money this year, and it’s possible Twitter is simply looking to take on debt in the hope of building its war chest while interest rates are low. Twitter still isn’t profitable, either, and hasn’t been since going public in late 2013. Last quarter, Twitter reported a net loss of $145 million, so while the company’s sales are gaining at a fast clip, doubling to $312 million in the second quarter, its net losses were more than triple from the same period last year.

Update: Includes additional data about Twitter’s recent earnings reports.

This article originally appeared on Recode.net.

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