"Wow, Coinbase seems to be getting bolder to take drastic measures."
San Francisco-based Coinbase plans to buy back $150 million of $1 billion in bonds set to mature in 2031 with Citigroup Global Markets managing the offering.
Investors who choose to participate in the buyback and sell their bonds before August 18, 2023 will be rewarded with a premium of $645 on the bond's face value* and the offer includes a special early tender premium of $30.
*The amount to be repaid to the borrower once the bond matures
While Coinbase will extend the offer of $615 per $1,000 face value of the bonds for investors who intend to sell their bonds after August 18, 2023 but before the offer end date of September 1, 2023.
However, it is worth noting that both offer prices exceed the price of the unaffected bond on August 4, 2023 equal to about 60 cents per dollar.
Coinbase's new move came after its second-quarter earnings report reported revenue of $708 million and an adjusted earnings loss of $0.42, beating analysts' expectations of $628 million by $0.76.
In contrast to last year, Coinbase's revenue saw a significant drop from $808 million but the crypto exchange managed to pare its losses as it had a loss of $4.98 per share.
Coinbase revealed that the crypto exchange's strong quarter was driven by its continued commitment to improving efficiency and becoming more financially disciplined.
It is well known that Coinbase also highlighted a remarkable 50% reduction in operating costs year over year, significant workforce streamlining including a 30% reduction in its current headcount.
