The US crypto exchange Coinbase is one of the most important trading places for Bitcoin and Co. In the future, the company wants to benefit even more from price gains on the crypto market and is significantly expanding its own investments. That gives the market as a whole a strong tailwind on Friday.
Coinbase CEO Brian Armstrong has caused a bang via Twitter: His company will invest more than $ 500 million in cryptocurrencies. In addition, ten percent of profits are to be invested in cryptos in the future – and he expects that this percentage will increase in the future as the young asset class matures.
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
In an entry in the company blog, Coinbase CFO Alesia Haas goes into a little more detail on the change in the company’s investment policy. Coinbase will be “the first publicly traded company to hold Ethereum, Proof-of-Stake-Assets and DeFi tokens and many other crypto-assets”.
These should be included in the balance sheet in addition to the existing Bitcoin position. According to information from the portal bitcointrasuries.net Coinbase owns 4,487 Bitcoins, which are worth around $ 211 million at the current price level.
With the exception of Ether, Haas does not give any specific names. However, these are coins that can also be traded on the Coinbase platform. In order to avoid conflicts of interest, however, the investments are made via external platforms or over-the-counter.
The selection of the assets is made taking into account the aggregated stocks in the custody of Coinbase, which means that customers can influence the investment strategy, according to the blog post. “We invest long-term and only sell under certain circumstances, for example when an asset is removed from our trading platform,” Haas continues.
The crypto market accelerates and cracks the 2 trillion mark again
In the crypto market, Coinbase’s investment plans made waves on Friday. The cumulative market cap of all coins and tokens climbed 6.5 percent, recapturing the $ 2 trillion mark. While Bitcoin and Ethereum are rising almost in step with the overall market, three top 10 coins with Cardano, XRP and Polkadot are recording double-digit percentage gains.
Note on conflict of interests:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin, Ethereum, Cardano.
Author Nikolas Kessler has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
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