Coinbase, MicroStrategy Bonds Tank as FTX Collapse Dents Institutional Confidence in Crypto

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Institutional investors seem to be selling coinbase and MicroStrategy bonds in the wake of FTX's collapse. reports godbole17

data source Finra-Morningstar, sending the yield – which moves in the opposite direction to price – to a record high 13.5%. The decline comes after nearly three months of consolidation and marks an extension of the bearish trend seen early this year. The yield on the company's bond due in 2026 jumped to 17%.

The companies' bonds carry a premium of around 1,000 basis points – or 10 percentage points – to the U.S. 10-year Treasury note yield, as of Friday. In traditional markets, a premium of that level is taken to represent credit stress. The 10-year Treasury was yielding 3.80% at press time.

 

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