Coinbase Increases Debt Buyback Offer to $180 Million
Cryptocurrency exchange Coinbase has announced an increase in its debt buyback offer, raising the amount from $150 million to $180 million. This move is aimed at repurchasing its 3.625% Senior Notes due 2031.
In an announcement made on September 5, Coinbase stated that it would commit a total of $180 million to buying back these notes. The offer will expire on September 18 at 11:59 pm Eastern Time.
So far, $50 million worth of tendered notes have been accepted for purchase, while an additional $211 million worth of notes have not been accepted. This brings the total to $261 million. If investors’ tendered 2031 Notes are accepted, they will receive 67.5 cents on the dollar.
The 2031 Notes have a principal outstanding balance of $1 billion and were issued in September 2021. They are currently trading near the offer value, having previously fallen to as low as 46 cents on the dollar in early January due to investor concerns about Coinbase’s credit quality.
In Q1 2022, Coinbase reported its first net loss of $430 million and a decrease in customer count. However, the exchange managed to beat analysts’ estimates last month with a narrower net loss of $97 million. Despite being impacted by the overall cryptocurrency bear market and ongoing litigation with the U.S. Securities and Exchange Commission, Coinbase’s stock has rallied 121% year-to-date, although it is still down 78% from its all-time high in November 2021.
Hot Take:
Coinbase’s decision to increase its debt buyback offer reflects its commitment to addressing investor concerns and strengthening its financial position. By repurchasing its 2031 Notes, the exchange aims to improve its credit quality and regain investor confidence. Although Coinbase faced challenges earlier this year with a net loss and decrease in customer count, its recent performance has shown signs of improvement. Despite the ongoing legal battles and the impact of the cryptocurrency market, Coinbase’s stock has shown resilience and is gradually recovering. This move to increase the buyback offer demonstrates Coinbase’s determination to navigate through challenges and emerge stronger in the cryptocurrency industry.
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