Coinbase, Etsy convertible notes gain in active trading; Airbnb trades down outright

By Abigail W. Adams

Portland, Me., June 29 – The convertibles secondary space saw an uptick of activity on Tuesday as growth stocks continued their rally with the S&P 500 index and Nasdaq composite again setting new records, despite only modest gains during the session.

The S&P 500 closed the day at a new record of 4,291.80, an increase of 0.03%, and the Nasdaq Composite closed the day at 14,528.33, an increase of 0.19%.

There was $80 million in reported convertibles secondary volume a little more than one hour into Tuesday’s session and $500 million on the tape about one hour before the market close.

Coinbase Global Inc.’s 0.5% convertible notes due 2026 were among the most actively traded notes during Tuesday’s session.

The notes gained on an outright and dollar-neutral basis as a slew of positive headlines pushed the company’s equity higher.

Etsy Inc.’s 0.25% convertible notes due 2028 continued to gain on an outright basis as stock continued its upward momentum.

However, Airbnb Inc.’s 0% convertible notes due 2026 sank further below par in active trading with stock under pressure during Tuesday’s session.

Coinbase improves

Coinbase’s 0.5% convertible notes due 2026 were making gains on an outright and dollar-neutral basis as stock popped following a slew of positive headlines.

The 0.5% notes, which priced at 99, gained more than 3 points outright with stock up more than 3%.

The notes were changing hands just shy of 102 versus an equity price of $254.42 early in the session.

They continued to rise as the session progressed and were trading just shy of 103 in the late afternoon.

The notes improved about 0.5 point dollar-neutral, a source said.

Coinbase’s stock traded to a high of $261.15 and a low of $250.01 before closing the day at $254.90, an increase of 3.33%.

Coinbase’s convertible notes hit their highest outright level since early June on Tuesday and turned positive on a dollar-neutral basis, a source said.

The notes traded down to a 95-handle the previous week as stock sold off amid plummeting Bitcoin prices.

However, in addition to Bitcoin extending its rally on Tuesday, the company was the subject of a slew of positive headlines.

Bitcoin traded up to $36,401.94, an increase of 4.93%, shortly before 5 p.m. ET.

Coinbase recently received approval to operate in Germany, the first license the country has granted.

Bitcoin and Coinbase also received an extra boost from news that famed asset manager Cathie Wood was partnering with Switzerland-based 21Shares AG, a company offering a variety of crypto-ETF products overseas, to create an ETF fund tracking Bitcoin in the United States.

Wood has invested heavily in Coinbase, which is a large holding in the ARK Fintech Innovation ETF and ARK Innovation ETF.

The ARK Fintech Innovation ETF purchased $20.3 million worth of shares of Coinbase on Monday, Barron’s reported.

Etsy gains again

Etsy’s 0.25% convertible notes due 2028 continued their upward momentum in active trading on Tuesday.

The notes gained about 2 points outright with stock up another 2.08%.

The 0.25% notes were changing hands at 109.5 in the late afternoon.

Etsy’s stock traded to a low of $195.02 and a high of $203.56 before closing the day at $202.53, an increase of 2.08%.

The 0.25% convertible notes have made large gains alongside stock over the past two sessions.

While Etsy’s stock participated in the broader market rally the previous week, stock surged after the company announced it was acquiring Elo7, a Brazilian e-commerce site, for $217 million on Monday.

Airbnb under pressure

Airbnb’s 0% convertible notes due 2026 sank further below par in active trading on Tuesday.

The notes were down about 1 point outright with stock off more than 2%.

The notes traded down to a 93-handle. They were changing hands at 93.25 heading into the market close.

Airbnb’s stock traded to a high of $149.94 and a low of $145.77 before closing the day at $146.08, a decrease of 2.57%.

Mentioned in this article:

Airbnb Inc. Nasdaq: ABNB

Coinbase Global Inc. Nasdaq: COIN

Etsy Inc. Nasdaq: ETSY

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