Coinbase CEO Announces $ 500M Bitcoin, Ethereum, and Crypto Bombshell When Market Price Surpasses $ 2 Trillion
Coinbase, the major U.S. bitcoin and cryptocurrency exchange that made a highly acclaimed Nasdaq NDAQ debut earlier this year, has announced it will add $ 500 million worth of crypto to its balance sheet.
Bitcoin and Ethereum price, which together account for more than half of the $ 2 trillion crypto market, has risen this year and has sparked a huge rally in many smaller cryptocurrencies (subscribe to Forbes’ CryptoAsset & Blockchain Advisor now and discover You crypto blockbusters ready for 1,000% profits.)
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Coinbase has become one of the world’s largest Bitcoin, Ethereum and cryptocurrency entry ramps for the. developed … [+]
“We recently received board approval to buy over $ 500 million in crypto on our balance sheet to expand our existing holdings,” Coinbase CEO Brian Armstrong announced on Twitter. “And in the future we will invest 10% of all profits in crypto. I expect this percentage will continue to increase over time as the crypto economy matures. “
In a blog post, the company, which now has a market capitalization of $ 52 billion, said it will “become the first publicly traded company to incorporate Ethereum, Proof of Equity Funding, Decentralized Finance (DeFi) tokens, and many other crypto assets “Keeps supporting trading on our platform in addition to bitcoin on our balance sheet.”
Armstrong pointed out that Coinbase eventually plans to convert far more of its working capital and assets into Bitcoin, Ethereum, and other cryptocurrencies. Earlier this month, Coinbase announced that it had raised more than $ 2.2 billion in the second quarter, up from just $ 186 million in the second quarter of last year.
“Hopefully we can do more of our business in crypto over time, it’s still a mix today,” Armstrong said.
Yesterday it was reported that Coinbase has raised around $ 4 billion since it went public in April.
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Bitcoin price has soared nearly 300% since that time over the past year, with Ethereum nearly skyrocketing … [+]
“We want to make sure we get these cash reserves so we can continue investing and expanding our products and services in the event we enter a crypto winter,” Alesia Haas, chief financial officer of Coinbase, told the Wall Street Journal.
Earlier this year, Elon Musk’s electric car company Tesla TSLA was the largest company to put Bitcoin on its balance sheet, buying the cryptocurrency valued at $ 1.5 billion. Tesla’s Bitcoin holdings are now valued at $ 2 billion, even after the company said it sold $ 200 million to test market liquidity.
Others have since followed suit, with business intelligence software company Microstrategy MSTR continuing to amass bitcoin since it started the trend around this time last year. Microstrategy, led by CEO and outspoken Bitcoin bull Michael Saylor, has now spent $ 2.7 billion on Bitcoin – the value is now said to be around $ 5 billion.