Coinbase to upsize debt repurchase by $30M

Cryptocurrency exchange Coinbase has upsized its debt buyback offer from $150 million to $180 million.

According to the Sept. 5 announcement, Coinbase will commit $180 million to buying back its 3.625% senior notes due 2031. The offer will lapse on Sept. 18 at 11:59 pm Eastern Time (3:59 am UTC).

At the time of the announcement, $50 million in tendered notes had been accepted for purchase, with an additional $211 million in tendered notes that had not been accepted, for a total of $261 million. Per Coinbase’s offer, investors would receive 67.5 cents on the dollar should their tendered 2031notes be accepted for repurchase by the exchange.

The 2031 notes have $1 billion in principal outstanding and were issued in September 2021. They are currently trading near the offer value, having previously fallen to as low as 46 cents on the dollar in early January due to investor concerns regarding Coinbase’s credit quality.

Coinbase reported a net loss of $430 million for Q1 2022, the first loss in its history, and a decrease in its customer count from 11.4 million to 9.2 million. The news prompted a steep sell-off of its stock and bonds.

In August, however, the exchange managed to beat analysts’ estimates, with a yearly revenue loss of just 10% and a much-narrowed net loss of $97 million. The stock has rallied 121% year-to-date, though it is still down 78% from its all-time high of $353.39 on Nov. 9, 2021. Aside from being impacted by the overall cryptocurrency bear market, the exchange is currently engaged in litigation with the United States Securities and Exchange Commission.

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