Coinbase to upsize debt repurchase by $30M

Cryptocurrency exchange Coinbase raised its debt repurchase offer to $180 million from $150 million.

According to an announcement on September 5, Coinbase will crime Spend $180 million to repurchase 3.625% senior notes due 2031. The offer will expire on September 18 at 11:59 PM ET (3:59 AM UTC).

As of the time of the announcement, $50 million of tender notes had been accepted for purchase and another $211 million of tender notes had not yet been accepted, for a total of $261 million. Investors would earn 67.5 cents on the dollar if the exchange accepted its bid for the 2031 notes for repurchase, according to Coinbase’s quote.

The 2031 Notes have an outstanding principal amount of $1 billion and will be issued in September 2021.at present trading It is close to the issue price, after falling as low as 46 cents in early January amid investor concerns about Coinbase’s credit quality.

Coinbase reported a net loss of $430 million for the first quarter of 2022, the first loss in its history, as the number of customers fell from 11.4 million to 9.2 million. The news sparked a sharp sell-off in its stocks and bonds.

However, in August, the exchange’s annual revenue loss was just 10%, beating analysts’ expectations. The net loss narrowed sharply to $97 million. The stock has risen 121% so far this year, but is still down 78% from its Nov. 9, 2021 all-time high of $353.39. In addition to being affected by the overall cryptocurrency bear market, the exchange is currently in the middle of a lawsuit with the SEC.