Coinbase to Add Over $500M in Crypto to Current Holdings
14 min ago•1 min read•Other
Coinbase will be purchasing more than $500 million in cryptocurrency to add to its holdings, the exchange giant’s CEO and co-founder Brian Armstrong tweeted on Thursday.
Armstrong wrote that the firm had "received board approval" to add these assets to its balance sheet. He also wrote that Coinbase would invest 10% "of all profit going forward in crypto." He added that he expected "this percentage to keep growing over time as the cryptoeconomy matures," and that he hoped to "operate more of our business in crypto." The company started trading publicly in April via a direct listing, and earlier this month, reported a net income of $1.6 billion for its second quarter. According to a report Wednesday in The Wall Street Journal, Coinbase has amassed a cash stockpile of $4.4 billion to ensure it can continue growing despite potential business risks such as regulatory crackdowns, cyberattacks and declines in trading volume.