Coinbase Global Inc. Eyes Buyback of Junk Bonds Amid Bitcoin’s Soaring Valuation 
Coinbase Global Inc. is planning to buy back a portion of its junk bonds as Bitcoin reaches its highest valuation for 2023. Here are the key points to understand:
- Bitcoin recently reached a notable price of $31,386 in July, showing a commendable ascent from the previous year.
- At the close of trading on Monday, Coinbase was valued at $29,204.
- Investors holding Coinbase’s 3.625% notes due October 2031 could potentially receive between $615 and $645 for every $1,000 of the principal amount.
- The bond market has responded positively, with the debt rallying to 62 cents on the dollar from its all-time low of 52 cents in November.
- Rising interest rates are prompting other companies like Warner Bros Discovery Inc. and Verizon Communications Inc. to repurchase debt.
The Speculation Surrounding SEC’s Stance on Crypto Giants
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Speculation is growing regarding the motives behind the SEC’s critical stance towards crypto exchanges like Binance and Coinbase. Here’s what to consider:
- Some believe the SEC’s actions may be related to liquidity concerns. With the U.S. government offering $170 billion in bonds this week and more to come, it raises questions about the need for exchanges to invest in junk bonds.
