The prominent United States-based cryptocurrency exchange, Coinbase has taken a step ahead to revise its debt buyback initiative due to underwhelming demand, as per a recent announcement.
The exchange’s effort to repurchase bonds has garnered a response below expectations, with a total of slightly over $50 million in bonds tendered by investors since the program’s commencement earlier this month. This falls short of the initially targeted amount of $150 million.
In light of these circumstances, Coinbase has chosen to enhance its proposition regarding the 3.625% senior notes set to mature in 2031. The original offer of 64.5 cents on the dollar has been upgraded to 67.5 cents on the dollar.
It is important to note that participants who engaged in the buyback initiative prior to the designated early tender deadline will be eligible for the revised offer, along with any accumulated and unpaid interest linked to the bonds they tendered.
Coinbase provided further clarification, stating, “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 cryptocurrency exchange emphasized that these participating note holders will additionally receive the accrued and unpaid interest connected to the notes that were tendered and approved for purchase.
Last year, Coinbase initiated the issuance of $1 billion worth of 3.625% senior notes maturing in 2031, a move that coincided with a significant downturn in the cryptocurrency market. These notes experienced a fall, plummeting to 47 cents on the dollar in December 2022.
During this time, Brian Armstrong, CEO of Coinbase, cautioned about the potential for a 50% drop in revenue due to the ongoing bearish trend in the crypto market.
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