Cryptocurrency exchange Coinbase has increased its offering for a debt buyback program worth $150 million after encountering lackluster demand. In an announcement made on August 21, Coinbase disclosed that investors had only subscribed to slightly over $50 million in bonds since the program's initiation earlier this month, falling short of the $150 million target. Consequently, the exchange raised its offer price for 3.625% senior notes due in 2031 to 67.5 cents per dollar from the previously set 64.5 cents per dollar.
Coinbase stated that investors who had submitted valid bids by the Early Bidding Time and had not withdrawn their Notes would be eligible to receive the revised consideration for the purchased Notes. Additionally, they would also receive acquired and unpaid interest on the notes accepted for purchase. The cryptocurrency exchange had initially issued $1 billion in 3.625% senior notes due in 2031 around face value in September 2021, just before the onset of a bear market in the cryptocurrency industry. The note's value plummeted to a record low of 47 cents on the dollar in December 2022 after Coinbase's CEO Brian Armstrong cautioned that the exchange's revenue could decline by 50% due to the ongoing cryptocurrency market decline. However, the note's value has since rebounded to approximately 64.5 cents on the dollar.
Despite being confronted with allegations from the US Securities and Exchange Commission (SEC) for selling unregistered securities, Coinbase's shares saw a 50% surge after the lawsuit was filed, although it has recently relinquished much of these gains. Cathie Wood, the CEO of ARK Invest, sold $12 million worth of Coinbase stock the previous month after being actively involved in purchasing the stock throughout 2022.
