Coinbase to increase debt buyback by $30 million

Cryptocurrency exchange Coinbase has increased its debt buyback proposal from $150 million to $180 million.

As stated in the announcement on Sept. 5, Coinbase plans to allocate $180 million for repurchasing its 3.625% senior notes maturing in 2031. This offer will expire on Sept. 18 at 11:59 pm Eastern Time (3:59 am UTC).

At the time of the announcement, $50 million in submitted notes had been approved for purchase, with an additional $211 million in submitted notes that had not been approved, totaling $261 million. According to Coinbase’s offer, investors would receive 67.5 cents on the dollar if their submitted 2031 notes are accepted for repurchase by the exchange.

The 2031 notes have a principal amount of $1 billion outstanding and were issued in September 2021. They are currently trading close to the offer price, having previously dropped to as low as 46 cents on the dollar in early January due to investor apprehensions regarding Coinbase’s creditworthiness.

Coinbase reported a net loss of $430 million for Q1 2022, marking its first loss in history, alongside a reduction in its customer base from 11.4 million to 9.2 million. This news triggered a significant sell-off of its stock and bonds.

However, in August, the exchange surpassed analysts’ expectations, reporting a yearly revenue decline of only 10% and a significantly reduced net loss of $97 million. The stock has surged 121% year-to-date, although it remains down 78% from its peak of $353.39 on Nov. 9, 2021. In addition to being affected by the broader cryptocurrency bear market, the exchange is currently involved in litigation with the United States Securities and Exchange Commission.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in