Coinbase to Buy Back up to $150M in Own Corporate Bonds

Coinbase has announced plans to start buying back some of its one billion dollar bonds.

With Citigroup Global Markets overseeing the offer, the San Francisco-based corporation would repurchase up to 150 million dollars of its one billion dollars in bonds due to mature in 2031 as part of the buyback exercise.

The tiered structure of Coinbase’s tender offer is intended to encourage early participation. Investors will receive a premium of $645 for every $1,000 of the bond’s face value, or 64.5 cents on the dollar, if they decide to participate in the buyback and sell their bonds before August 18.

According to the corporation, this offer includes a 30-dollar special early-tender premium.

Investors who choose to sell their bonds after August 18 but before the offer expiration date of September 1 will get a price offer from Coinbase of 615 dollars, or 61.5 cents on the dollar, for every 1,000 dollars of the bond’s face value.

The fact that both offer prices are higher than the bond’s unaltered price as of August 4—roughly 60 cents on the dollar, according to data from Business Insider—is remarkable.

The tactical move follows Coinbase’s release of its second-quarter results report, in which the company revealed revenues of $708 M and an adjusted loss per share of $0.42, exceeding analyst projections of $628 M and a $0.76 loss per share.

Compared to the same quarter in 2022, Coinbase’s revenue fell significantly from 808 million dollars. However, the business was able to contain its losses, showing a significant improvement from the stunning $4.98 per share loss registered during the same time in 2022.

In a letter to shareholders, Coinbase stated that the company’s continued dedication to increasing efficiency and practicing greater financial restraint helped to explain the company’s strong quarter.

Notably, the company highlighted a spectacular 50 percent reduction in its ongoing operational expenditures year over year, which included a considerable personnel rationalization with a 30 percent headcount drop during this time.

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[lee hunter]

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• This reply was modified 6 months, 3 weeks ago by lee hunter.
• This reply was modified 6 months, 3 weeks ago by lee hunter.