Coinbase Global Inc. is initiating a buy back program for its low-rated bonds. The cryptocurrency exchange is extending an offer to redeem up to $150 million worth of its 3.625% notes set to mature in October 2031, media reports said.
According to an announcement on Monday, investors participating in the offer stand to receive between $615 and $645 for every $1,000 of the bond’s principal. The deadline for the offer is set for September 1 at 11:59 pm in New York time.
The development coincides with the surging value of the world’s largest cryptocurrency at $29,560, nearing its highest point in 2023. Bitcoin’s value has seen an upward trajectory this week, inching closer to its 2023 peak of $31,386, achieved in mid-July.
The bonds that Coinbase aims to retire were trading at 62 cents on the dollar when the bond market closed on Monday, a noticeable increase from its record low of 52 cents recorded in November.
To oversee the tender offer, Coinbase has enlisted the services of Citigroup Global Markets Inc.
In the context of rising interest rates, corporate borrowers are increasingly inclined to repurchase their debts to mitigate the cost of refinancing.
In a similar move, Warner Bros Discovery Inc. expressed its intention to buy back up to $2.7 billion worth of bonds maturing between December 2023 and June 2024 the previous week. Furthermore, Verizon Communications Inc. escalated its bond repurchase initiative to an amount exceeding $2.7 billion.
