Coinbase raises bond buyback limit to $180M amid a surge in investor interest

Coinbase accrued its enslaved buyback bounds to $180 cardinal and extended its deadline to Sept. 18, according to a Sept. 5 statement.

Coinbase extended its deadline owed to unexpectedly precocious involvement successful its buyback program. The speech initially projected repurchasing its 3.625% elder notes, maturing successful 2031, astatine $675 per $1,000 main magnitude of tendered notes.

At the aboriginal tender stage, bondholders tendered astir $50 cardinal worthy of notes, driven by an archetypal offering terms of 64.5 cents connected the dollar. Following an summation to 67.5 cents connected the dollar and an hold of the interim expiration period, an further $211.06 cardinal worthy of notes were tendered, raising the full buyback worth to $261 million.

With the expanded maximum aggregate acquisition price, Coinbase tin get each the offered bonds and perchance more. This surge successful bondholder involvement implies that galore marketplace participants whitethorn presumption the existent acquisition terms arsenic just and spot constricted upside successful holding until maturity.

Bonds issued successful 2021

Coinbase issued these bonds for $1 cardinal successful 2021 during the bullish signifier of the cryptocurrency market. Since then, respective crypto projects, specified arsenic FTX, BlockFi, Celsius, and others, person faced insolvency, with fiscal regulators expanding their regulatory pressure connected the emerging industry. The U.S. Securities and Exchange Commission filed lawsuits against Coinbase, alleging that the steadfast violated national securities law.

Nevertheless, the bond’s worth has risen from its debased of 47 cents connected the dollar successful December 2022 to its existent acquisition price. Despite these regulatory hurdles and bearish sentiments pervading the market, Coinbase’s stock has besides experienced a 118% year-to-date increase.

The station Coinbase raises enslaved buyback bounds to $180M amid a surge successful capitalist interest appeared archetypal connected CryptoSlate.