Cryptocurrency exchange Coinbase has announced an upsize to its debt repurchase program, now committing to repurchasing $180 million of its 3.625% Senior Notes due in 2031. The original offer was set at $150 million but has now been expanded.
Extended Offer Deadline: September 18
Coinbase’s offer to buy back these notes is open until September 18 at 11:59 pm Eastern Time. As of the announcement date, $50 million worth of tendered notes have already been accepted for purchase, with an additional $211 million in tendered notes awaiting acceptance. Should investors’ 2031 Notes be accepted for repurchase by Coinbase, they will receive 67.5 cents on the dollar.
These Senior Notes, originally issued in September 2021, have a principal outstanding amount of $1 billion. They had experienced a drop in value, falling to as low as 46 cents on the dollar in early January, primarily due to investor concerns regarding Coinbase’s credit quality.
Coinbase’s Financial Performance
Coinbase faced challenges in Q1 2022, reporting a net loss of $430 million, marking its first-ever loss in history. Additionally, the exchange saw a decrease in its customer count from 11.4 million to 9.2 million during this period. These developments led to a significant sell-off of Coinbase’s stock and bonds.
Recent Financial Improvements
However, in the latest financial update, Coinbase managed to surpass analysts’ expectations. It reported a yearly revenue loss of only 10% and significantly narrowed its net loss to $97 million. Despite this progress, the stock remains down by 78% from its all-time high of $353.39 on November 9, 2021. Coinbase’s performance has been influenced not only by the broader cryptocurrency market but also by its ongoing litigation with the U.S. Securities and Exchange Commission.
Coinbase is increasing its debt repurchase offer to $180 million, providing an opportunity for investors to sell their 2031 Senior Notes until September 18. The exchange’s financial performance has seen both challenges and recent improvements, with its stock still recovering from previous lows while dealing with regulatory issues.