Coinbase to put a minimum of $500million in crypto in its books
Coinbase announced today that it will be putting at least $500 million into cryptocurrency assets, after the board of the publicly traded company nodded its approval. The assets will not just be including Bitcoin but could be any crypto out there. With the company currently holding $4 billion in cash, the minimum amount of $500 million can expected to be surpassed.
The news was revealed in a recent company blog post. Aside of the minimum approved commitment of $500 million, the leading exchange also said it will allocate 10% of quarterly net income into a crypto diverse portfolio.
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
While the company already holds over $200 million Bitcoin on its balance sheet and looks to expand its holdings, the company now plans to invest in Ethereum, Proof of Stake assets, DeFi tokens, and other currencies that it offers on its exchange. By doing so, Coinbase would become the first publicly traded company to hold such variety of assets on its balance sheet.
Coinbase emphasizes its commitment to long-term investments in the crypto sector, and stated:
“Our investments will be continually deployed over a multi-year window using a dollar cost averaging strategy. We are long term investors and will only divest under select circumstances, such as an asset delisting from our platform.”
To avoid any conflict of interest with its business operations, the blog post added:
“All trades will be executed via our over-the-counter desk or away from our exchange to avoid any conflict of interest with our customers.”
Coinbase Q2 results recorded a net income of $1.61 billion. Its (re)direction of investment strategy is expected to lead additional capital flowing into the industry.
The exchange’s latest developments add to the already bullish momentum, with all signals on green and the super cycle to set off.
The post Coinbase to put a minimum of $500million in crypto in its books appeared first on iGaming.
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Author: Peter Siu