Morning Commentary: Coinbase convertibles in focus as Bitcoin breaches key support level

By Abigail W. Adams

Portland, Me., June 22 – “It’s Bitcoin Day!” a market source said.

Convertible bonds with exposure to Bitcoin were under pressure in active trading early in Tuesday’s session as Bitcoin dropped below $30,000, a key support level for the cryptocurrency.

Coinbase Global Inc.’s 0.5% convertible notes due 2026 topped the volume charts with the convertible bonds down 2.25 points outright with stock off more than 4%.

The 0.5% convertible notes were changing hands at 94.625 versus an equity price of $211.70.

There was more than $25 million of the bonds on the tape, making them the most actively traded in the secondary space.

Coinbase’s stock was changing hands at $214.26, a decrease of 3.75%, shortly before 11 a.m. ET.

MicroStrategy Inc.’s 0% convertible bonds due 2027 were the second most actively traded issue in the secondary space.

The notes dropped 5.5 points outright with stock off more than 8%.

The 0% notes were changing hands at 66 versus a stock price of $514.50.

There was more than $7 million of the bonds on the tape.

MicroStrategy’s stock was changing hands at $536.21, a decrease of 8.11%, shortly before 11 a.m. ET.

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