Crypto exchange Coinbase increases offer on debt buyback program after lackluster demand

Investors show tepid interest in Coinbase's debt buyback program

Coinbase, the popular cryptocurrency exchange, has announced an increase in its offer for its $150 million debt buyback program. The move comes after investors showed lackluster interest, with only just over $50 million of bonds tendered compared to the $150 million target.

Raising the stakes: Coinbase increases offer on Senior Notes

To entice investors to participate in the buyback program, Coinbase has raised its offer on the 3.625% Senior Notes due 2031. The offer has been increased from 64.5 cents on the dollar to 67.5 cents on the dollar.

What's on the table for investors?

Investors who tendered their Notes at or before the Early Tender Time will be eligible to receive the Amended Consideration for the Notes accepted for purchase. In addition, they will also receive accrued and unpaid interest on their Notes that were tendered and accepted for purchase.

The fall and rise of Coinbase's Senior Notes

Exactly $1 billion worth of Coinbase 3.625% Senior Notes due 2031 were issued in September 2021, just before the cryptocurrency bear market hit. The notes plummeted to a record low of 47 cents on the dollar in December 2022 when Coinbase CEO Brian Armstrong warned of a potential 50% decline in revenue due to the ongoing crypto rout. Since then, their price has recovered to around 64.5 cents on the dollar.

Coinbase stock and regulatory challenges

Despite facing allegations of selling unregistered securities from the U.S. Securities and Exchange Commission, Coinbase stock initially rebounded by 50% after the lawsuit was filed. However, it has recently given up most of its gains. Notably, Cathie Wood, CEO of Ark Invest, sold $12 million worth of Coinbase stock last month after aggressively buying throughout 2022.