- The exchange’s total bond liability is $1.37 billion
- Coinbase said the measure reflects management’s confidence in the firm’s stability
Yesterday, June 15, cryptocurrency exchange Coinbase said it bought back $64.5 million in convertible bonds at a 29 percent discount. These securities mature in 2026.
The company expects the buyback to complete on June 20.. After that, Coinbase’s total bond liability will be $1.37 billion.
“We are always looking for the best ways to place capital and maximize shareholder value. This opportunistic redemption should be viewed as a continuation of these efforts. It reflects confidence in our business, a strong financial performance for Q1 2023 and an improved competitive position,” emphasized Alesia Haas, CFO of the exchange.
But what does it mean in practice?
Convertible bonds are bonds that entitle an investor to a share in the issuing company. By buying them Coinbase, it seems, wants to give depositors confidence in the financial stability of the exchange.</nbsp;
We recall that last Tuesday, June 6, the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase. The company’s stock price has since fallen, and significantly. At the time of writing, it is trading at $54.25 with a slight decline on the weekly chart.. At the same time there is an uptrend in the market.
The news that the company is redeeming bonds ahead of schedule is likely to “heat up” the rate a little more.. Especially since the process with the SEC could drag on for months, if not years.