Nasdaq-listed cryptocurrency exchange company Coinbase is set to invest up to $500 million worth of its balance sheet in cryptocurrencies according to a Thursday announcement on Twitter by CEO, Brian Armstrong.
The purchases will add to the company’s existing crypto holdings, with Armstrong also revealing that the company will be investing 10% of its quarterly net profits back into the crypto market. The move is considered a show of faith in the future growth of an industry in which Coinbase has been at the forefront.
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
Filings with the U.S SEC in February noted that the company held $230 million worth of Bitcoin and $53 million worth of Ether (ETH) on its balance sheet. Moving forward, Coinbase will increase its holdings in the top two cryptocurrencies and also get exposure to other coins and tokens listed on its platform.
Regarding the cryptocurrencies on their shopping list, a follow-up Coinbase announcement notes that it will be a “diversified portfolio of crypto assets.”
We will become the first publicly traded company to hold Ethereum, Proof of Stake assets, DeFi tokens, and many other crypto assets supported for trading on our platform, in addition to Bitcoin, on our balance sheet. — Coinbase announcement
Launched in June 2012, Coinbase is one of the oldest cryptocurrency exchanges in the United States, boasting over 69 million verified users and 9,000 institutions. In March, the company also became the first among its peers to go public, securing a ‘landmark’ listing on the Nasdaq.
Prime among Coinbase’s institutional clients is Michael Saylor’s MicroStrategy, another company that holds Bitcoin on its balance sheet. Following MicroStrategy’s foray into Bitcoin late last year, Coinbase revealed that its institutional arm, Coinbase Prime, handled the $425 million deal.
Update: This article has been updated with more information regarding assets that Coinbase will add to its crypto portfolio. An earlier version had said it was uncertain which cryptocurrencies Coinbase would buy.
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