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We all know, we all know…
It’s a daring transfer to speak about one thing as dry as bond gross sales in our ‘that is cool’ part.
But it surely’s not the sale itself that’s cool, however what it signifies that’s getting us excited right here!
Trigger right here’s the factor…
Certain, Coinbase simply offered $1B value of convertible senior notes, aka I-owe-you’s that say:
“Entrance us $1B, and we’ll pay you curiosity on that mortgage. Then in 2030, we’ll both pay you again in money, inventory, or a mixture of each (whichever you’d favor)”
All that to cowl the corporate’s current money owed, which type of appears like taking out a brand new bank card to repay your previous one — but it surely ain’t!
Actually, that is the thrilling half — as a result of:
The upper Coinbase’s inventory value is on the time of any bond gross sales → the higher rates of interest the corporate can negotiate on the debt.
And simply 12 months in the past, Coinbase would have been getting a WAY worse deal (bear in mind how scared all of us have been at the beginning of 2023?).
$COIN inventory is up greater than 4X since then, and its capacity to tackle ‘higher’ debt only one 12 months later is a massively constructive indicator for the broader crypto market!
We like to see it.
