Coinbase, the largest cryptocurrency exchange in the United States, has announced that it will upsize its debt repurchase by $30 million. The company has also announced interim results and an extension and upsizing of its cash tender offer for its outstanding 3.625% Senior Notes due 2031.
When the announcement came out, $50 million in tendered notes for purchase were accepted. An additional $211 million in tendered notes had not been accepted, bringing the total to $261 million. According to Coinbase’s offer, investors whose 2031 Notes were accepted for repurchase by the exchange would receive 67.5 cents on the dollar.
Coinbase Continues to Work Hard to Offer Top-Notch Service
The 2031 Notes, which were issued in September 2021, have a principal outstanding of $1 billion. These notes are currently trading near the offer value. However, in early January, they had fallen to as low as 46 cents on the dollar due to concerns regarding Coinbase’s credit quality among investors.
The company reported a net loss of $430 million during the first quarter of 2022. This was the first loss in the company’s history. Additionally, Coinbase’s customer count decreased from 11.4 million to 9.2 million. These developments led to a steep sell-off of the company’s stock and bonds.
This move comes as part of Coinbase’s ongoing efforts to manage its capital structure and reduce its overall cost of capital. The company has been actively repurchasing its debt in recent months, and this latest announcement represents a significant increase in the size of its repurchase program.
The upsizing of the debt repurchase is expected to have a positive impact on Coinbase’s financial position, as it will reduce the company’s overall debt burden and improve its balance sheet. This, in turn, is likely to have a positive impact on the company’s stock price and overall market valuation.
Overall, this latest announcement from Coinbase is a positive development for the company and its investors. It demonstrates the company’s commitment to managing its capital structure responsibly and sustainably and is likely to be well-received by the market.
