Coinbase buys $ 500 million worth of cryptocurrencies and invests future earnings in a cryptocurrency portfolio. CEO Brian Armstrong revealed such plans a few months ago.
US cryptocurrency exchange Coinbase will add $ 500 million in cryptocurrencies to its balance sheet. Additionally, 10 percent of quarterly earnings are invested in crypto assets. The company’s management announced this on Thursday, December 23, in a blog post. The company plans to invest in “Ethereum, Proof of Stake Assets, DeFi tokens, and many other crypto assets that are compatible with trading on our platform.” Coinbase will be the first public company to do this, CFO Alesia Haas explained in the post.
CEO Brian Armstrong Had Coinbase’s Plans Before in a previous tweet mentioned in August this year. He also pointed out the company’s ambitions to diversify its crypto operations and services, which are primarily focused on trading.
We believe that in the future, more and more companies will hold crypto assets on their balance sheets. We hope that by incorporating more crypto assets into our own financial practices, we can take another step towards building a more open crypto economy.
says the company.
Coinbase suspended the loan program
Coinbase had also had plans to offer crypto loans. However, after a dispute with the SEC and a threat of lawsuit by the U.S. Securities and Exchange Commission, the Exchange dropped the plan. Just two weeks ago, Coinbase released its earnings and growth metrics for the third quarter. There was a significant decrease compared to the previous quarter. However, compared to the same period last year, the profit increased by 500 percent. Even if the share of the crypto exchange has not shown development since the IPO, as many expected, the number of Coinbase users is growing steadily.