Coinbase has officially announced that the organization will be adding $500 million worth of cryptocurrency to its balance sheet and will also invest 10% of the profits on diverse crypto assets.
Coinbase Inc (NASDAQ: COIN), one of the world’s governing crypto exchanges, has announced that they are planning to purchase and add $500 million worth of cryptocurrency to their balance sheet. The firm has also declared that they are planning to invest 10% of profits procured into different digital assets.
Coinbase CEO Brian Armstrong has also stated that the company will be increasing the percentage of profit invested each year to accommodate versatile digital assets.
We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.
— Brian Armstrong (@brian_armstrong) August 19, 2021
Coinbase to Add $500 Million to Its Crypto Balance Sheet with Plans to Invest 10% on Varied Crypto Assets
Coinbase in their official company blog has disclosed that the following move initiated by the firm will solidify the exchange as the first publicly-traded company with access to keep Ether, DeFi tokens, and Proof-of-Stake assets on its balance sheet.
The post also highlights the Coinbase agreement to facilitate long-term investments in the domain of cryptocurrency, it further emphasized how the company intends to utilize the dollar cost strategy by deploying its investments over a multi-year window. The firm also stated that the option to deny services to any long-term investor will be applicable only in special circumstances such as an asset being delisted from our platform.
Coinbase in their blog announcement has further reiterated that their future investments may be informed via customer holdings implying the idea that Coinbase may add an asset to its balance sheet only when the customers or users are available to make significant custodial deposits of a particular cryptocurrency.
Furthermore, the organization has decided to opt for platforms affiliated with third parties to actively trade and prevent conflicts of interest among various users. It is to be noted that the news about Coinbase adding a new crypto expense to its balance sheet comes after a day when the organization had completed its Japanese launch with Mitsubishi UFJ Financial Group. This particular partnership is intended to amplify the current user scale of the firm by adding a pool of new customers and also acquiring access to Mitsubishi’s existing 40 million consumer base.
Coinbase is one of the leading crypto exchanges in the US that has been actively facilitating buying and selling of cryptocurrency to users across the platform. Founded in 2012, the firm has successfully carved its niche as a premium crypto exchange. Coinbase’s plan to invest 10% of profits into varied digital assets is said to spearhead the company’s goal to develop an open crypto economy and work towards defining itself as one of the promising crypto platforms to conduct trading with.
Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.