(Bloomberg) -- The recent rally in cryptocurrencies has spurred a recovery in a bond issued by the exchange firm Coinbase Global Inc. that had been trading in distressed territory as recently as last year. 

Coinbase sold the convertible bond — which can be converted into shares when it matures — during the pandemic amidst a surge in demand for tech and growth stocks. It has a coupon of just 0.5% and demand plummeted when the underlying stock slumped following the rise in global interest rates. 

This week the security rebounded to a cash price of 102.625 cents on the dollar, a two-year high, pushing the yield into negative territory. At this level, it’s worth nearly double what it was at its November 2022 trough of 52.75 cents. 

The rally also coincides with a broader recovery in appetite for convertible bonds, with some firms in the AI sector managing to sell bonds with no coupon. In the crypto space, Michael Saylor’s MicroStrategy Inc. sold a $700 million convertible bond with a coupon of just 0.625% to raise funds to buy more Bitcoin. 

Read more: Coinbase Debt Was ‘Canary in the Coal Mine’ for Crypto Meltdown

Many of the convertible bonds sold during the pandemic from firms like Peloton Interactive Inc., Snap Inc. and Ubisoft Entertaiment have recovered, but are still trading far below the 100 cent mark known in the market as “par.” Another crypto-related company, DigitalOcean, has bonds currently trading at 83 cents, the highest level since January 2022. 

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