Coinbase is Investing $500M in Cryptocurrency
Coinbase, the largest cryptocurrency exchange in the United States by trading volume, reveals that it will invest half a billion dollars in cryptocurrency like Bitcoin and Ethereum and plans to add more in the future as the crypto economy matures.
Brian Armstrong, CEO of Coinbase said on his recent tweet that the company had recently received a from its board allowing the company to purchase over $500 million of crypto which will be added to its balance sheets. He also added that the company will also provide an additional 10% of all its profits in crypto in the future as the industry matures.
Coinbase also reveals that its investment strategy is based on the classic dollar-cost averaging strategy which is also introduced by the popular legendary investor, Warren Buffett.
Further, the company states that, “We believe in the crypto economy, a future where economic transactions — buying, selling, spending, earning — will be based on crypto assets. Our products strive to make that vision a reality by making crypto trusted and easy to use for customers around the world,” according to its blog post.
Coinbase joins Microstrategy and Tesla that have also included Bitcoin in their holdings to counter inflation and potential devaluation of the U.S. dollar. However, they are not limiting its investments to cryptocurrencies as they recently amassed also a $4 billion in cash to prepare for increased regulations.
Founded in June 2012, Coinbase debuted as a public company and becomes the seventh-biggest listing in U.S history and its first quarter as a public company, it reported a revenue of more than $1.8 billion and on its second quarter, it brought in $2.23 billion in total revenue, which is $186 million more than what it’s earned the same period last year.
Source: CNBC
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