Coinbase will be purchasing over $500M in crypto and investing 10% of all profit going forward in crypto
The largest crypto exchange in the U.S Coinbase will be purchasing more than $500 million in cryptocurrency to add to its holdings and will be investing 10% of all profit going forward in crypto. CEO Brian Amstrong tweeted on Aug 20.
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
Amstrong added that he hoped to “operate more of our business in crypto – today it is still a mix.”
This month, Coinbase reported a net income of $1.6 billion for its second quarter, if the company will be investing 10% of profit, they can buy $150 million in crypto of the quarter.
Unlike Tesla and MicroStrategy that will buy Bitcoin on the market to add to the balance sheet, Coinbase simply does not sell it for fiat, just hodl it. If it continues to grow at this rate, in just a few years, Coinbase will be able to become the largest public company holding cryptocurrency in the world.
As AZCoin News recently reported, Coinbase will launch in Japan in partnership with banking giant Mitsubishi UFJ Financial Group (MUFG).
“In line with our global strategy, we will aim to be the easiest to use and most trusted exchange in Japan that’s fully compliant with local regulations.” the company said.
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