Coinbase Adjusts Debt Buyback Offer Due to Moderate Demand
Coinbase has made some changes to its debt buyback program following lackluster demand.
In a Monday announcement, the largest US-based crypto exchange said that since the program started earlier this month, investors have tendered just over $50 million worth of bonds, falling short of the targeted $150 million.
As a result, Coinbase has increased its offer on 3.625% senior notes due in 2031 from 64.5 cents on the dollar to 67.5 cents on the dollar.
The company clarified that holders of the notes who participated in the buyback program before the early tender deadline would be eligible to receive the revised offer and any accrued and unpaid interest on their tendered notes.
“Holders of Notes (‘Holders') who validly tendered and did not validly withdraw their Notes at or prior to the Early Tender Time are eligible to receive the Amended Consideration for the Notes accepted for purchase," the exchange wrote.
"Holders of Notes will also receive accrued and unpaid interest on their Notes validly tendered and accepted for purchase."
Last year, Coinbase issued $1 billion worth of 3.625% senior notes due in 2031, just before the cryptocurrency market experienced a severe downturn.
The notes reached an all-time 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 bear market.
However, their value has since gradually recovered, reaching approximately 64.5 cents on the dollar.
Back in June, the SEC sued both Binance, the world's largest cryptocurrency exchange, and Coinbase, accusing them of illegally offering unregistered securities to users.
Despite the regulatory scrutiny, Coinbase stock has seen a blistering rally this year, gaining
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