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Coinbase Proposes to Redeem Junk Bonds Amid Rising Interest Rates

Published:

According to the statement yesterday, August 7, Coinbase Global Inc. is proposing to redeem its unpaid junk bonds worth $150 million out of the overall 3.625% notes that should be due by October 2031 while the market nears its highest value for the year.

However, the Fed (Federal Reserve) interest rate has increased to nearly a 22-year high. As a result, the company’s refinancing became very expensive.

So, amid the increasing cost of refinancing, Coinbase Global cryptocurrency exchange decided to buy back about $150 million of its junk bonds.

Up until September 1, Coinbase crypto exchange will still be open to buying back its junk bonds, and repurchasing of the junk bonds is taken care of by Citigroup.

READ ALSO: SHIB Lead Developer Highlights Impact Of Shibarium SSI

Fast Facts

  • Last month, on July 26, the United States Federal Reserve increased the interest rates by 25 basis points, driving them to 22 years high.
  • This hike in interest rates made debts very expensive for companies. As a result, most companies within the United States have commenced buying back their debts.
  • According to reports from a reliable news outlet, Coinbase junk bonds redemption windows will remain until September 1. Before that time, the crypto exchange is ready to buy back up to $150 million from its overall debt.
  • Furthermore, for each $1,000, the investors can cash out up to $615 to $645, whereas this specific debt on the bond market is trading at about $0.62.
  • Due to Bitcoin’s rally this year, the price of the bonds recovered a bit and reached a low of almost $0.52.
  • Meanwhile, Coinbase published its quarterly earnings report for the Q2 (second quarter) this year last Friday. The reports disclosed that the crypto exchange has an overall revenue of $708 million, surpassing the estimated value of $631 million.

What’s Happening in Crypto Today?

As of this writing, the price of Bitcoin is at $29,452.66, with an increase in market cap by 1.68% and an increase in trading volume by 64.96%.

On the other hand, Ethereum is presently trading at $1,838.22, with an increase in market cap by 0.66% and an increase in trading volume by 50.45%.

  • Meanwhile, the price of Cardano is currently at $0.2939, with an increase in market cap by 0.78% and an increase in trading volume by 51.29%.
  • On the other hand, TRON is presently trading at $0.07651, with an increase in market cap by 0.04% and an increase in trading volume by 3.46%.
  • The price of Solana at the moment is at $23.53, with an increase in market cap by 2.34% and an increase in trading volume by 23.63%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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