Coinbase CFO cites opportunism as company strategy, repurchases some corporate debt after cost-cutting measures prove effective

Coinbase CFO Alesia Haas stated in a recent speech that Coinbase is an "opportunistic" player, maintaining good pricing discipline and seeking opportunities in the market. In addition, while improving the financial health of the company, Coinbase also proposed to repurchase its corporate debt at a premium.

Mergers and Acquisitions Always a Part of Coinbase

According to The Block's report, Coinbase CFO Alesia Haas, speaking at the 26th Annual Oppenheimer Technology, Internet, and Communications Conference, described the company's strategy for non-organic growth as "opportunistic."

Joined by asset management company as CFO in 2018, Alesia Haas stated:

Regarding mergers and acquisitions, we are looking for unique new skills, whether it's adding talent, adding new products, or just adding key talent. So mergers and acquisitions are always a part, but it's opportunistic.

She also admitted that Coinbase has not been as active this year as in previous years, but the company will continue to maintain good pricing discipline and observe how the market evolves. While Coinbase has not completely halted trading, it is taking a more cautious approach while continuing to lower expenses.

In March, Coinbase acquired asset management company One River Digital Asset Management ORDAM. One River is a traditional financial asset management company venturing into the cryptocurrency market, having made significant investments in Bitcoin in November 2020, with even former SEC Chairman Jay Clayton serving as an advisor. According to the transaction announcement, ORDAM operates as an independent business and wholly-owned subsidiary of Coinbase, providing differentiated investment solutions for institutional clients.

Premium Repurchase of Corporate Bonds

Haas also stated that Coinbase's discipline in reducing expenses has paid off, making the organization more agile and efficient. The company released its second-quarter financial report last week, significantly reducing operating expenses, mainly in technology research and development costs, and restructuring costs recognized in the previous quarter. Coinbase laid off 30% of its workforce last year, cutting nearly 50% of expenses to cope with the crypto winter.

Coinbase recently initiated a cash tender offer to repurchase up to an aggregate purchase price of $150.0 million of its outstanding 3.625% senior notes due 2031, excluding accrued and unpaid interest.

Repurchasing involves a company buying back its own stock or bonds from the market or existing investors. For companies, repurchasing bonds can reduce debt burdens, lower interest expenses, and improve overall financial conditions. However, the premise is that the company must have sufficient cash. It appears that Coinbase is very confident in its financial position to be willing to repurchase corporate bonds at a premium.