Coinbase, the leading trading volume exchange in the United States, has revealed that it plans to add $5 billion worth of cryptocurrency to its balance sheet.
Coinbase CEO Brian Armstrong announced that the company’s board of directors has approved the cryptocurrency spending boom on August 20 tweetAnd added that Coinbase also plans to invest 10% of all profits generated in digital assets.
Armstrong also stated that the company hopes to increase the percentage of profit allocated to cryptocurrency purchases over time.
We recently received approval from the board of directors to purchase more than $500 million in cryptocurrency on the balance sheet to increase our existing assets. We will invest 10% of all profits in cryptocurrencies. As the crypto economy matures, I expect this percentage will continue to grow over time.
— Brian Armstrong (@brian_armstrong) August 19, 2021
A blog post published on the same day by Coinbase Announce This move will make the exchange the first listed company to hold ether, DeFi tokens and proof-of-stake assets on its balance sheet.
The announcement underscores Coinbase’s commitment to long-term investment in the crypto sector, stating:
“Our investment will use the dollar cost averaging strategy to continue to deploy within a multi-year window. We are long-term investors and will only withdraw funds under certain circumstances, such as asset delisting from our platform.”
The post added that future investments may be based on the client’s holdings, which suggests that if users make large deposits in a given cryptocurrency, Coinbase may add an asset to its balance sheet.
Coinbase will trade on third-party platforms or through its over-the-counter trading desks to avoid conflicts of interest with customers.
according to Crypto Treasuries, Coinbase is currently the eighth listed company on the balance sheet of Bitcoin holdings, and it is also the cryptocurrency exchange with the largest value of BTC held in its treasury.
The news about the new spending on cryptocurrencies was released a day after Coinbase completed Japan launch Cooperation with Mitsubishi UFJ Financial Group (MUFG). According to the announcement, as part of the agreement, Coinbase will also gain access to approximately 40 million Mitsubishi customers.
On the same day, Coinbase also announced that it has accumulated a $4 billion war fund Cash to prepare for regulatory fees and the next crypto winter.