This Would Have Been WAY Worse a Year Ago…

TL;DR

• Coinbase sold $1B worth of bonds to pay off its existing debts, getting better rates than it would have a year ago when their stock was a ¼ of its current price.

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We know, we know…

It’s a bold move to talk about something as dry as bond sales in our ‘this is cool’ section.

But it’s not the sale itself that’s cool, but what it indicates that’s getting us excited here!

Cause here’s the thing…

Sure, Coinbase just sold $1B worth of convertible senior notes, aka I-owe-you’s that say:

“Front us $1B, and we’ll pay you interest on that loan. Then in 2030, we’ll either pay you back in cash, stock, or a mix of both (whichever you’d prefer)”

All that to cover the company’s existing debts, which kind of feels like taking out a new credit card to pay off your old one — but it ain’t!

In fact, this is the exciting part — because:

The higher Coinbase’s stock price is at the time of any bond sales → the better interest rates the company can negotiate on the debt.

And just 12 months ago, Coinbase would have been getting a WAY worse deal (remember how scared we all were at the start of 2023?).

$COIN stock is up more than 4X since then, and its ability to take on ‘better’ debt just one year later is a massively positive indicator for the broader crypto market!

We love to see it.