Coinbase Global Inc.’s debut junk-bond sale fell to fresh lows after the Chinese government banned all crypto transactions and vowed to stop illegal crypto mining.
Paper losses for investors that bought the two tranches of notes at par now stand at roughly $100 million.
The $1 billion 10-year 3.625% bonds dropped more than 1.5 points overnight to 94.5 cents on the dollar, while the $1 billion seven-year 3.375% notes fell more than a point to 95.5 cents, according to Trace bond pricing data.
Coinbase’s bonds had already whipsawed since pricing on Sept. 14 as markets traded down over fears that the Evergrande contagion could affect global markets, and after dropping plans to launch a new crypto lending platform after the U.S. Securities and Exchange Commission raised concerns over the plan.
Read more: Coinbase’s Bond Debacle Saddles Debt Buyers With Losses
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