A US bank is reportedly setting aside an additional $2.6 billion while preparing to pay a major penalty to regulators. TD Bank is being investigated over accusations that Chinese gangs relied on the lender to launder $650 million worth of illegal narcotics proceeds from 2016 to 2021. Now, the bank is preparing for a total […]
The post Banking Giant Prepares for $3,000,000,000 Fine Over Role in Massive Money Laundering Scheme: Report appeared first on The Daily Hodl.
On Thursday, the Arbitrum airdrop claiming process went live and ARB markets dropped more than 85% lower than pre-IOU market prices recorded the day before. Arbitrum airdropped just over a billion ARB tokens, or 11.6% of the total supply. At noon ET, more than 474 million tokens had been claimed. Wild Volatility for ARB Token: […]
According to statistics, the stablecoin BUSD saw a significant drop in its supply over the past 30 days, shedding roughly 23.8% from Dec. 5, 2022, to Jan. 6, 2023. Since Dec. 13, 2022, BUSD’s supply has been reduced by more than $5 billion, going from $21.84 billion to its current level of $16.77 billion. Stablecoin […]
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 the initial quotes offered by Coinbase, with the influx of demand suggesting buyers hold a higher opinion of the company’s credit-worthiness than initially suspected by the exchange.
“The strong demand is clearly a big endorsement by debt investors,” commented Bloomberg Intelligence analyst Julie Chariell.
However, the exchange’s bonds were rated one rank below investment-grade, with Bloomberg bond indexes indicating that similar debt offerings fetch a 2.86% yield on average.
Junk bonds refer to corporate debt issued by a company that does not have an investment-grade credit rating. Due to the reduced credit rating, junk bonds command higher interest rates than investment-grade corporate bonds.
Coinbase announced its debt offering on Sept. 13, stating the funds may be used for “continued investments in product developments” and “potential investments in or acquisitions of other companies, products, or technologies” the firm may identify in the future.
Related: Coinbase plans to raise $1.5B via debt offering
Coinbase is only the second major crypto firm to complete a junk bond offering, with MicroStrategy Inc. issuing $500 million worth of notes to fund further Bitcoin accumulation as the markets crashed in June.
Since trading as high as $342 on its opening day, Coinbase’s COIN stock last traded for $243. However, COIN is up roughly 20% since late June.
The recently bullish investor sentiment surrounding Coinbase comes in spite of the U.S. Securities and Exchange Commission (SEC) threatening to take legal action against the exchange should it launch a USDC lending product.
Prior to the SEC’s warning, the exchange had intended to launch its crypto lending product ‘Lend’ in only “a few weeks.”
