Coinbase adds $ 500 million in crypto to balance: CEO Brian Armstrong

Coinbase CEO Brian Armstrong announced on Twitter today that the registered cryptocurrency exchange has received board approval to add $ 500 million worth of cryptocurrency assets to the balance sheet. Not only that, but the fact that it will place 10% of all future profits in cryptocurrency.

December February, if the company is ready to enter the public Sunday through a direct listing, Coinbase released an S-1 application showing it has a $ 365 million range in cryptocurrency. Of these, $ 230 million is bitcoins, about $ 53 million is Ethereum, $ 49 million is stable coins, and $ 34 million is crypto assets.

While that’s enough to put Coinbase fourth among all bitcoin Holding companies, two of the three IT cloud software companies-MicroStrategy and electric vehicle maker Tesla – bought their first BTC last year; Coinbase has been in existence since Dec 2012. Some believed that the crypto-domestic company should have created more in this time frame, but accounting rules and treasury management principles may have made this imprudent.

Recently, we received board approval to buy more than $ 500 million worth of crypto on our balance sheet to add to our existing assets. And we invest 10% of all profits in crypto. I expect that percentage to continue to increase over time as the crypto economy improves.

– Brian Armstrong (@brian_armstrong), August 19, 2021

But comparable quarterly revenues, first to $ 800 million in Q1 and then to $ 1.6 billion in Q2, have convinced Coinbase’s board that it has opportunities to diversify its assets.

The exchange, which gets most of its money from transaction fees, benefited from high trading volumes last quarter despite a drop in cryptocurrency prices as Bitcoin slipped from $ 60,000 to $ 30,000.

According to Armstrong, the company gradually wants to “run more of our transactions in cryptography.” “For now,” he shared, ” it’s still a mix.”;

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