Coinbase spends $45.5 million to buy back some of its debt
Quick Take
- Coinbase spent around $45.5 million in cash for the repurchase, which constituted 0.5% of the notes.
- The firm now has a $1.37 billion principal amount on outstanding notes.
Coinbase has reduced its debt through a recent debt repurchasing.
The firm bought back $64.5 million worth of their Convertible Senior Notes, a type of debt that can be exchanged into a set amount of the issuer's shares, at a 29% discount, according to a company release. These notes were originally due in 2026. The firm spent around $45.5 million in cash for the repurchase, which constituted 0.5% of the notes.
Coinbase expects the repurchase to close on or near June 20, 2023, in which the company will have about a $1.37 billion principal amount on outstanding notes.
"We are always looking for the best opportunities to deploy capital to create shareholder value,” said Alesia Haas, Coinbase's chief financial officer, in a company statement. “This opportunistic repurchase is a continuation of those efforts and reflects our confidence in our business, strong first quarter financial performance, and improved competitive positioning.
Coinbase originally announced its $1.25 billion private debt offering on May 17, 2021.
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