Coinbase increases junk bond offering to $2B after investors swarm
Coinbase has sold $2 billion worth of corporate bonds in an offering that saw $7 billion worth of bids placed. Leading U.S.-based cryptocurrency exchange Coinbase has seen enormous demand for its junk bond offering, with the firm increasing the size of the sale by one-third from $1.5 billion to $2 billion.According to Economic Times, at least $7 billion worth of orders were placed in competition for equal quantities of seven and 10-year bonds, offering interest rates of 3.375% and 3.625% respectively.The publication cites an anonymous source as claiming the interest rates were cheaper than....
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“Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet,” assured Coinbase CEO Brian Armstrong. The price of Coinbase’s junk bonds are tanking amid an underwhelming performance in Q1 and fears over what could happen in the event of a bankruptcy. According to bond trading data from Trace Bonds, both of Coinbase’s junk bond offerings have dropped roughly 17% and 5.2% since its Q1 report on May 10 to sit at $63 and $62.31 at the time of writing. Overall they are down 20% and....
In a recent development, Coinbase issued a junk bond, and the market seemed to be hungry for the instrument. Currently, the US crypto exchange is recording more demands for these bonds every day. With these demands, the crypto exchange’s sales have grown from $1.5B to $2B. Bonds are fixed investments that yield interest monthly. But when we talk of junk bonds, investors make higher returns but face higher risks as well. Companies usually issue junk bonds to raise capital very fast for a major project. Corporate Bond Orders Keep Rising The orders have continued to troop in for the....
The firm initially sought a $400-million bond offering. Software firm MicroStrategy saw $1.6 billion worth of orders in a recent junk bond offering — four times the initially sought amount.Earlier this week, the company announced it would issue $400 million worth of junk bonds in a private offering, with a view to using the proceeds to purchase Bitcoin (BTC). Junk bonds are debt offerings by companies without investment-grade credit ratings and typically offer investors higher returns while carrying higher risk. Returns between 6.125% and 6.25% have been floated for the bonds, eclipsing....
Michael Saylor has doubled down on MicroStrategy’s huge bets on bitcoin, borrowing $500 million through junk bonds to plow into the cryptocurrency – $100 million more than expected. Michael Saylor’s MicroStrategy ramps up junk-bond The firm said that it will borrow around $500 million in the form of senior secured notes. At a time when […]
Interest rates in lending out stablecoins remain higher than those offered in traditional finance markets in the US. This is why the decentralized finance market has seen so much success in the past year. Investment options that would normally be the go-to choice for investors in the country are returning less interest, so the move […]