Coinbase Increases Debt Buyback Offer to $180 Million Amidst Challenging Quarter
Summary:
Cryptocurrency exchange Coinbase increases debt buyback offer to $180 million for its 2031 Senior Notes due. This comes after the exchange reported its first-ever net loss and a decrease in customer count in Q1 2022. Despite the recent improvements, Coinbase's stock remains down from its all-time high and it is currently engaged in litigation with the U.S. Securities and Exchange Commission.
Coinbase, a cryptocurrency exchange, has increased its debt buyback offer from $150 million to $180 million. The company announced on September 5th that it would allocate a total of $180 million to repurchase its 3.625% Senior Notes due 2031. The offer will expire on September 18th at 11:59 pm Eastern Time. Currently, $50 million worth of tendered notes have been accepted for purchase, while an additional $211 million worth of tendered notes have not yet been accepted, bringing the total to $261 million. Coinbase's offer allows investors to receive 67.5 cents on the dollar if their tendered 2031 Notes are repurchased by the exchange. The 2031 Notes have a principal outstanding amount of $1 billion and were issued in September 2021. They are currently trading close to the offer value, after previously dropping to as low as 46 cents on the dollar in early January due to concerns over Coinbase's credit quality. In Q1 2022, Coinbase reported a net loss of $430 million, marking its first loss in history, and a decrease in its customer count from 11.4 million to 9.2 million. This news led to a significant sell-off of its stock and bonds. However, last month, Coinbase surpassed analysts' expectations with a yearly revenue loss of only 10% and a narrowed net loss of $97 million. The company's stock has rallied 121% year-to-date, although it remains 78% down from its all-time high of $353.39 on November 9, 2021. In addition to being affected by the overall cryptocurrency market downturn, Coinbase is currently involved in a legal dispute with the U.S. Securities and Exchange Commission.
Published At
9/5/2023 2:56:30 PM
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