Coinbase, a famous U.S. cryptocurrency exchange, has seen a number of investors buy their “spam”.
The company is said to have increased its sales volume from $ 1.5 billion to $ 2 billion. Demand was so strong that orders were worth at least $ 7 billion Junk securities are corporate bonds issued by a company that is not classified as an investment grade.
Because of this lower credit rating, spam pays a higher return than high-quality corporate loans. Apparently the interest rate was lower than what Coinbase originally discussed, but a flood of debt investors suggested that Coinbase was more valuable to them.
According to Bloieberg intelligence analyst Julie Charielli “Strong demand is clearly excellent support from bond investors.” Coinbase equities were rated below investment grade along with Bloomberg-Ba2 bond indices.
This showed that the average yield on similar bonds was 2.86%. Recently, Moody’s Investors Service began rating Coinbase Global Inc. as a bond issuer.
Moody’s analysts Fadi Abdel Massih, Donald Robertson and Ana Arsov wrote in their report: “Coinbase’s financial profile suggests a high-quality credit rating, but currently the uncertain regulatory environment and fierce competition outweigh these strengths.”
The company announced its bond offer on Monday, announcing that the funds will be used to acquire investment products and “potential investments or other companies, products or technologies” that it may identify in the future.
Coinbase was only the second critical cryptographic company to close the spam offer after Microstrategy. This was also reflected in the rise in the value of their COIN shares, nearly 20% from June 2020 onwards. While leading analysts were still cautious about cryptography and related attempts, the cryptography fever had erupted and traditional investors did not want to disappear.