Publicly traded crypto exchange Coin base will buy over $ 500 million worth of cryptocurrencies to become a more cryptocentric company, CEO Brian Armstrong revealed in a tweet this morning.
“We recently received board approval to purchase over $ 500 million of crypto on our balance sheet to add to our existing holdings. And we will be investing 10% of all profits in crypto going forward, “said Armstrong, adding:
“I expect that percentage will continue to increase over time as the crypto economy matures.”
We recently received board approval to buy over $ 500 million of crypto on our balance sheet to add to our existing holdings. And we will invest 10% of all profits in crypto in the future. I anticipate that as the crypto-economy matures, that percentage will continue to grow over time.
– Brian Armstrong (@brian_armstrong) August 19, 2021
Crypto powerhouse Coinbase
Coinbase is the third largest crypto exchange in the world by trading volume, according to data from the CoinGecko analysis tool. It processed over $ 4.3 billion worth of trades just yesterday and remains a top pick for institutions and financial giants entering the crypto market.
But despite the nature of its business, Coinbase has historically taken a regulatory approach to cryptocurrencies and stayed away from altcoins or adding cryptocurrencies to its balance sheet.
However, such a feeling is now shifting. Cryptocurrencies are called a bit more positive from the US government, and global banks are steadily increasing both allocations and investments in the crypto and blockchain sectors.
Last year saw the electric car maker Tesla and business analytics company MicroStrategy are investing billions of dollars in Bitcoin and becoming the first major companies to keep Bitcoin as part of their treasury.
Similar moves were observed in Asia than the Hong Kong-listed photosharing app Meitu has used both Bitcoin and Ethereum on his balance sheet.
And Coinbase is now joining that league. As a recently publicly traded company, it has a corporate board of directors that approves decisions and sets future strategies, and one of the first board moves was a crypto allocation.
Nor is it likely the only cryptocentric move Coinbase is taking if you watch a follow-up tweet from Armstrong: “Over time, we can do more of our business in crypto – today it’s still a mix.” Bull market only -Things if you ask.
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