Coinbase to purchase $500M worth of crypto

Fri 20 Aug 2021 ▪ 9h27 ▪ 3 min read — by Katie Donaldson

Coinbase’s board has green lighted a purchase of over $500 million (~£367 million) worth of cryptocurrencies on its balance sheet. 10% of future profits will be reinvested in digital assets.

According to the company’s filing for its direct listing on Nasdaq, Coinbase is currently holding roughly $365 million (~£268 million) in cryptocurrencies. Despite the fact that the firm specialises in crypto, it still owns less digital assets than MicroStrategy and Tesla, both of whom the exchange has helped purchase Bitcoin (BTC).

Earlier this month, Coinbase posted net revenue of $2 billion (~£1.47 billion) in the second quarter, up from $178 million (~£130 million) a year earlier and $1.6 billion (~£1.17 billion) in the first quarter. Coinbase had $1.9 billion (~£1.4 billion) in transaction revenue, surpassing consensus expectations for $1.8 billion (~£1.32 billion).

Coinbase is shopping BIG

We believe in the cryptoeconomy, a future where economic transactions—buying, selling, spending, earning—will be based on crypto assets,” said Coinbase CFO Alesia Haas. “The purchase means we will become the first publicly traded company to hold Ethereum (ETH), Proof of Stake assets, decentralized finance (DeFi) tokens, and many other crypto assets supported for trading on our platform, in addition to Bitcoin, on our balance sheet.”

To avoid any conflict of interest with customers, the trades required for cryptocurrency investment at Coinbase will be conducted through outsourcing.

The exchange plans to increase its allocation in the future. It is reasonable to expect that more and more companies will hold cryptocurrencies on their balance sheet as the crypto industry matures. 

Coinbase is currently the eighth largest public company by Bitcoin holdings on its balance sheet, and the largest crypto exchange by the amount of BTC held in its treasury.

Coinbase CEO Brian Armstrong on Thursday, 19th August, said that the largest digital asset exchange in America has received board authorisation to add $500 million (~£367 million) in crypto to its balance sheet.

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Katie Donaldson avatar
Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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