: Coinbase buys back $64.5 million in convertible debt, and stock falls nearly 5%

Shares of Coinbase Global Inc. COIN said Thursday that it repurchased $64.5 million worth of 0.50% convertible senior notes, in privately negotiated deals that represent about 29% discounts to par value. After the repurchases close, which is expected to occur on June 20, about $1.373 billion principal amount of the notes will remain outstanding. Shares of the cryptocurrency exchange dropped 4.6% in premarket trading. Prices of Coinbase’s bonds have been selling off after the U.S. Securities and Exchange Commission filed charges against the company as part of a broader crackdown of the crypto industry. “As we stated in our most recent shareholder letter, the first quarter of 2023 was a turning point in building a company that is more efficient and financially disciplined,” said Chief Financial Officer Alesia Haas. “This opportunistic repurchase is a continuation of those efforts and reflects our confidence in our business, strong first quarter financial performance, and improved competitive positioning.” Coinbase’s stock has dropped 16.4% over the past three months while bitcoin BTCUSD has gained 2.2% and the S&P 500 SPX has climbed 12.4%.

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