Bitcoin Forum

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https://www.theblock.co/post/249194/coinbase-ups-bond-buyback-to-180-million

Quick Note:
- The cryptocurrency exchange announced it is raising the maximum amount of bonds it is willing to purchase through a buyback program to $180 million from $150 million.
- Just a couple of weeks ago, it appeared a limited number of bondholders had interest in selling their notes back to Coinbase.
- Coinbase said investors had tendered about $50 million worth of the bonds which have a coupon of 3.625%. Now, the company says that in the days following the announcement investors tendered an additional $211 million worth of the bonds for a total of $261 million.

What do you think of this? Is this going to directly impact anything in Crypto or just they are trying to save their arse at this moment?

It's just good corporate governance. If you have the money on hand to buy back bonds and stop paying interest on them it's better then doing a stock buyback that just boots stock price.
Without doing a dig into how much cash they have on hand / other debts and the rates they are paying on those it's a tough call.

Yes you can get way more money by leaving that cash in the bank and earning interest on it. BUT, it also may make getting money in the future from other bonds easier since overall the company has less debt.

-Dave

Reading about bonds, I am fearful when the world economy is in recession and cryptocurrency is in a bear market.

Months ago, many banks in the USA and some ones in Europe bankrupted as consequences of recession and inverse interest rates that affected initial capital they spent to buy governmental bonds and when they needed to sell those bonds, they had to sell them in losses.

What are behind Coinbase Bond Buyback Program? I am not an expert on this but anyone deeply comprehensive understand about this, could you share your thinking?

Impact of an inverted yield curve (https://www.investopedia.com/articles/basics/06/invertedyieldcurve.asp)

Nothing to think of this really! It's a very normal process of any cash rich corporates. When they need money, they float bonds and when they have money, they buy those bonds back to save on interest. Because it makes no sense for a corporate to kept the bonds unpaid because they have to pay back interest on it.

I don't think crypto market is going to be impacted in any way due to this bond buy back. Rather it's a positive thing that a cryptocurrency related company has done good business to pay off their debt.

Coinbase buying back bonds is a savvy move, showing they're financially strong and confident. This benefits investors and customers because it means the company is doing well. Plus, it indicates that Coinbase believes in its own growth potential, which is fantastic news for shareholders and employees.