Coinbase Increases Debt Repurchase Offer by $30M

Cryptocurrency exchange Coinbase has announced that it will increase its debt buyback offer from $150 million to $180 million. The move comes as the exchange aims to repurchase its 3.625% Senior Notes due 2031.

Increasing the Offer

According to a statement released on September 5th, Coinbase has committed a total of $180 million to the debt buyback program. The offer will remain open until September 18th at 11:59 pm Eastern Time.

At the time of the announcement, $50 million in tendered notes had been accepted for purchase, while an additional $211 million in tendered notes had not been accepted. This brings the total to $261 million in tendered notes. As per Coinbase's offer, investors would receive 67.5 cents on the dollar if their tendered 2031 Notes are accepted for repurchase.

Background on the 2031 Notes

The 2031 Notes, with $1 billion in principal outstanding, were issued by Coinbase in September 2021. After facing investor concerns about its credit quality, the notes had previously fallen to as low as 46 cents on the dollar in early January.

Coinbase's Recent Performance

During the first quarter of 2022, Coinbase reported its first-ever net loss of $430 million. The company also saw a decrease in its customer count, dropping from 11.4 million to 9.2 million. This news resulted in a significant sell-off of its stock and bonds.

However, in the previous month, Coinbase managed to surpass analysts' expectations with a yearly revenue loss of just 10% and a significantly reduced net loss of $97 million. While the stock has rallied 121% year-to-date, it is still down 78% from its all-time high in November 2021, when it was priced at $353.39. Additionally, Coinbase is currently involved in litigation with the U.S. Securities and Exchange Commission.