Coinbase Repurchases $1B Bonds after Strong Quarter

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The US-based
cryptocurrency exchange Coinbase is repurchasing a portion of its USD $1
billion bond expiring in September 2031. The decision followed an impressive
financial performance by the cryptocurrency exchange in the second quarter of
the year.</p><p>According to the
company’s statement issued yesterday (Monday), the offer is valid up to
September 1, 2023, at 11.59 p.m. Citigroup brokerage’s arm has been selected to
manage the repurchase, which is expected to improve the financial position of
the Nasdaq-listed exchange by reducing interest expenses.</p><p>Premium</p><p>The holders
of the bond who participate in the buyback and sell their bonds before August
18 will receive USD $645 per USD $1,000 principal amount of the bond. This
amount includes an early-tender premium of USD $30. Besides that, for the
bondholders who sell their bonds after August 18 but before September 1, they
will receive USD $615 for USD $1,000 of the bond’s principal amount.</p><p>Four days ago, <a href="https://www.financemagnates.com/cryptocurrency/coinbase-plans-to-file-motion-challenging-sec-lawsuit/" target="_blank" rel="follow">Finance
Magnates</a> reported that Coinbase <a href="https://www.financemagnates.com/cryptocurrency/coinbase-narrows-losses-in-q2-despite-declining-trading-volumes/" target="_blank" rel="follow">reduced
its net loss</a> to USD $97 million in the second quarter from USD $1.1 billion
reported in the same period of last year. The impressive performance was
despite a 17% year-over-year decline in the company’s revenue. Among the
factors that boosted the crypto <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> is its selection as a Surveillance
Sharing Partner for spot <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> ETFs among asset managers in the US.</p><p>Coinbase’s Q2
Report</p><p>

"In Q2, we
made further progress toward this bold goal, such as expanded access to
derivatives products to customers outside the US, being selected by many
leading asset managers to provide critical infrastructure underpinning their
proposed spot Bitcoin exchange-traded funds (ETFs) products," the exchange
explained.</p><p>Meanwhile, Coinbase has <a href="https://www.financemagnates.com/cryptocurrency/coinbase-plans-to-file-motion-challenging-sec-lawsuit/" target="_blank" rel="follow">challenged
a lawsuit</a> filed against it by the Securities and Exchange Commission (SEC).
The regulator is accusing the company of operating an unregistered trading
platform and offering unregistered digital assets. However, the crypto exchange
has disputed the claims, saying the regulator is overstepping its mandate.</p>

This article was written by Jared Kirui at www.financemagnates.com.