Coinbase increases bond redemption limit by $30 million

• Coinbase recently announced that it had increased its bond repurchase limit by $30 million.
• The cryptocurrency exchange is currently willing to spend $180 million to buy back the outstanding 3.625% senior notes.
• Bondholders have previously shown little interest in selling senior notes to cryptocurrency exchanges.
• Investors bid for $50 million worth of bonds last month.

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

Senior debt is a type of bond that is paid out before other forms of debt if the issuing company declares bankruptcy and is forced to liquidate. Because these bonds are low risk, they pay relatively low interest rates.

Coinbase Investors Offer $211 Million in Bonds

Interim results of a cash bid for the outstanding notes released by Coinbase earlier today show that the company has modified the terms of its tender offer to increase the amount of senior notes it can purchase for a maximum aggregate purchase price of $180 million. The tender offer validity period has also been extended until September 18, 2023.

Last month, Coinbase circulated a public offer to buy back a portion of its 3.625% senior notes due 2031. However, the proposal failed to attract the attention of bondholders, indicating optimism about the bond among them. At the time, investors were bidding up about $50 million worth of bonds. It was reported that an additional $211 million worth of bonds were subsequently put up for bid.

The latest push to buy back outstanding senior notes comes less than a month after Coinbase announced its initial public offer to buy back some of its $1 billion worth of bonds. The cryptocurrency giant offered investors a premium on its senior notes after a rather strong performance in the second quarter of 2023. The exchange said at the time that investors who sold the bonds before Aug. 18 would receive 64.5 cents on the dollar.