Cryptocurrency exchange giant Coinbase has announced a significant upsize in its debt buyback program, increasing it from the initial $150 million to a substantial $180 million. According to an announcement made on September 5th, Coinbase intends to allocate the increased amount to the repurchase of its 3.625% senior notes due in 2031. The deadline for this offer is set for September 18th, concluding at 11:59 pm Eastern Time (3:59 am UTC).
At the time of the announcement, Coinbase had already accepted $50 million worth of tendered notes for repurchase, and an additional $211 million in tendered notes remained pending, making the total amount tendered an impressive $261 million. Under Coinbase’s offer, investors whose 2031 notes are accepted for repurchase will receive 67.5 cents on the dollar.
These 2031 notes, originally issued in September 2021 with a principal value of $1 billion, had previously seen their value plummet to as low as 46 cents on the dollar in early January. This decline was attributed to investor concerns regarding Coinbase’s credit quality, following the company’s Q1 2022 net loss of $430 million, its first-ever loss, and a decline in customer count from 11.4 million to 9.2 million.
However, in August, Coinbase exceeded analyst expectations, reporting a yearly revenue loss of just 10% and substantially reducing its net loss to $97 million. Despite the challenges faced in the cryptocurrency market, Coinbase’s stock rallied by 121% year-to-date, although it remains down by 78% from its all-time high of $353.39 on November 9, 2021. In addition to market dynamics, the exchange is currently embroiled in legal disputes with the United States Securities and Exchange Commission.
