Coinbase has decided to invest $ 500 million in cryptocurrency and plans to allocate 10% of its quarterly profits to a portfolio of crypto assets. The firm plans to invest in Ethereum, Proof of Stake assets, Defi tokens, and other crypto assets. According to Alesia, Coinbase is the first company to do so.
COINBASE INVESTS IN THE CRYPTOCURRENCY
In a tweet, boss Brian Armstrong unveiled plans for the brokerage platform. He expects the allocation to increase as the market matures. It is also indicated the ambitions of the company to diversify its services in the cryptocurrency universe, which are mainly focused on trading.
“We hope that over time we can operate more of our business in crypto,” said the boss of the company. “Today it’s still a mix.”
After Coinbase made the decision, the price of Bitcoin shot up, topping $ 47,000 last Friday, while it hasn’t gone above $ 45,000 in the past two days. Coinbase shares rose as well.
Remember that several companies have included Bitcoin in their holdings, such as Tesla and Microstrategy. They took this decision as a hedge against inflation and the potential devaluation of the US dollar.
Recently, Coinbase also released its quarterly results and other metrics that have won over analysts.
In a blog post, CFO Alesia Haas clarified that investments will be determined by the cryptocurrency balances in her custody and deployed “over several years using an averaging strategy of purchase “. She also indicated that Coinbase invests for the long term and “will only divest in special circumstances, such as removing an asset from our platform.”
For its part, Wall Street reported that Coinbase has stored $ 4 billion in cash to deal with regulatory headwinds.