Coinbase Offers to Buy Back Junk Bonds Worth $150 Million
The crypto exchange Coinbase has announced that it is willing to buy back up to $150 million worth of its outstanding junk bonds. This move comes as companies face expensive refinancing costs due to the high Federal Reserve interest rates.
Key Points:
- Coinbase is open to buying back its junk bonds until September 1.
- Investors can cash out between $615 to $645 for every $1,000 of debt.
- Coinbase’s bonds are trading at around $0.62 on the bond market.
- The recent Bitcoin rally has helped boost the price recovery of the bonds.
- Citigroup will handle Coinbase’s junk bond buybacks.
Coinbase’s quarterly report for the second quarter of 2023 revealed a total revenue of $708 million, surpassing estimates of $631 million. However, the company experienced an 8% decline in revenue compared to the previous quarter, which Coinbase attributes to a period of low market volatility.
The company’s stock recently broke out from a consolidation zone, reaching a trading price of $85.23. Coinbase is currently involved in a legal battle with the SEC, but some investors remain optimistic due to its partnership with BlackRock’s potential Bitcoin ETF.
Hot Take: Coinbase’s offer to buy back its junk bonds shows its commitment to managing its debt and ensuring financial stability. Despite the decline in revenue, the company’s strong performance and strategic partnerships indicate a positive outlook for its future.
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