TL; DR
Full story
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, it’s what it indicates that gets us excited here!
Because this is what it’s all about…
Sure enough, Coinbase just sold $1 billion worth of convertible senior notes, also known as I-owe-you’s that say:
“Pay us $1 billion, and we’ll pay you interest on that loan. We will then pay you back in 2030 in cash, shares or a combination of both (whatever you want)”
All this to cover the company’s existing debt, which feels like taking out a new credit card to pay off your old one – but it’s not!
In fact, this is the exciting part – because:
The higher Coinbase’s stock price is at the time of the bond sale → the better the interest rates the company can negotiate on the debt.
And just twelve months ago, Coinbase would have gotten a MUCH worse deal (remember how scared we all were at the start of 2023?).
$COIN stock is up over 4x since then, and the ability to take on ‘better’ debt just a year later is a hugely positive indicator for the broader crypto market!
We’d love to see it.