Coinbase Increases Bond Buyback Limit By $30 Million

• Coinbase recently announced that it has increased its bond buyback limit by $30 million.
• The crypto exchange is now willing to spend $180 million to buy back its outstanding 3.625% senior notes.
• Bondholders previously expressed little interest in selling the senior notes to the crypto exchange.
• Investors had tendered over $50 million worth of bonds last month.

Crypto giant Coinbase has announced that it has increased its bond buyback limit by $30 million. The California-based crypto exchange is now willing to spend a whopping $180 million to fund the buyback of its outstanding 3.6% senior notes due 2031. 

A senior note is a type of bond that is paid out before other forms of debt in the event that the issuing company declares bankruptcy and is forced into liquidation. These notes pay a comparatively low rate of interest since they carry a low degree of risk. 

Coinbase Investors Tender Bonds Worth $211 Million

The Interim Results of the Cash Tender for Outstanding Bonds announced by Coinbase earlier today revealed that the firm had amended the terms of the tender offer to increase the amount of senior notes that may be purchased for a maximum aggregate purchase price of $180 million. The expiration date of the tender offer was also extended to September 18, 2023. 

Last month, Coinbase circulated a tender offer to buy back a portion of its 3.625 %senior notes due 2031. However, the offer failed to capture the interest of the bondholders, indicating a bullish sentiment for the notes among them. At the time, investors tendered bonds worth approximately $50 million. An additional $211 million worth of bonds have reportedly been tendered since.

The latest push for buying back outstanding senior notes comes less than a month after the initial tender offer to buy back a portion of the $1 billion bonds was floated by Coinbase. The crypto giant offered its investors a premium for its senior notes following a rather strong performance in the second quarter of 2023. At the time, the exchange stated that investors who sold their bonds before August 18 would receive 64.5 cents on the dollar.