Coinbase Decided to Invest an Additional $500 Million in Crypto Industry
The cryptocurrency exchange Coinbase will more than treble its crypto assets and dedicate 10% of future income to cryptocurrencies. The board’s permission is required for the decision to be made and for now, it has already received approval. Not only that, but the corporation will allocate 10% of all future revenues to cryptocurrencies, providing a significant boost to the ecosystem.
This is a significant increase over Coinbase’s current assets, which are believed to be worth roughly $365 million based on its S-1 filing with the SEC (also known as the US Securities and Exchange Commission). It is important to note that another $500 million will get the business closer to Tesla’s $1.5 billion Bitcoin investment earlier this year.
According to Coinbase chief executive Brian Armstrong’s tweet, the company recently acquired board authority to purchase over $500m of crypto on their balance sheet to add to their existing holdings. In addition, they are planning to invest 10% of all future profits in the crypto sector. As the crypto economy grows, he anticipates that this number will continue to rise.
Armstrong’s 10% figure might turn out to be fairly substantial. Coinbase made $800 million in earnings in the first quarter and more than doubled that amount in the second one, indicating that the crypto exchange would continue to invest in crypto assets in the future. However, Q3 revenues may lag since Bitcoin has fallen from an all-time high of roughly $64,000 to $24,000 in recent months. The good news is that the currency has begun to recover, and it is now worth $46,855.