Coinbase Makes Premium Bond Buyback Of $1 Billion Amid Surging Performance

Key Points:

• Coinbase plans to repurchase up to $150 million of its $1 billion bonds due in 2031, offering investors a bonus for early participation.
• With Q2 revenues reaching $708 million, surpassing expectations, Coinbase’s bond buyback is backed by its robust financial performance.
• Coinbase partners with Citigroup Global Markets for the buyback.

Leading cryptocurrency exchange, Coinbase has unveiled plans to repurchase a portion of its $1 billion bonds, buoyed by its robust financial performance during the second quarter.

The company aims to acquire up to $150 million of its maturing 2031 bonds, signaling its confidence in the market and its flourishing prospects.

Investors who participate in the buyback initiative and sell their bonds before August 18 will be rewarded $645 for each $1,000 face value of the bond.

This figure incorporates an attractive early-tender bonus of $30. For those opting to sell between August 18 and the offer’s expiration on September 1, Coinbase will extend an offer of $615 per $1,000 face value, equaling 61.5 cents per dollar.

Coinbase’s decision to offer a slight premium is underscored by its impressive Q2 performance. The exchange reported revenues totaling $708 million, surpassing projections of $628 million, alongside an adjusted earnings-per-share loss of $0.42, better than the expected loss of $0.76.

The current upward trajectory of Bitcoin prices, approaching 2023 highs, has likely influenced this buyback endeavor.

The buyback process is overseen by Citigroup Global Markets, which Coinbase has engaged to facilitate the initiative. These bonds, maturing in 2031, represent one facet of the company’s diverse debt portfolio, which also includes bonds due in 2026 and 2028, amounting to over $1 billion in value.

Coinbase’s decision to retire its debt has contributed to the bond’s trading price rising to 62 cents on the dollar, following a record low of 52 cents set in November.

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