Coinbase will be investing $500 million from its profits into digital assets; only platform delisting of assets will prompt divesting.
10% of the net profits per quarter will also be channeled into the digital asset portfolio of Coinbase, the largest US cryptocurrency exchange, aside from the $500 million investment coming from the current holdings.
We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we'll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.
— Brian Armstrong (@brian_armstrong) August 19, 2021
Coinbase communicated to Medium that it is committed to investing in the cryptocurrency market. This investment would make Coinbase the first company gone public that will own DeFi tokens and Ethereum (ETH) among other digital assets, including Bitcoin (BTC) that are supported by the platform itself. In April 2021, Coinbase was listed on Nasdaq.
The interest of Coinbase is a long-term investment with the possibility to divest only if the delisting of assets from the platform occurs. In the spirit of avoiding conflict of interests with users, Coinbase will either invest away from the exchange or using the over-the-counter (OTC) desk.
Coinbase is not the first company to invest in cryptocurrencies. Earlier this year, the likes of MicroStrategy and Tesla have purchased Bitcoin (BTC) with their cash reserves.
Elon Musk invested a total of $1.5 billion into Bitcoin (BTC). In June, Tesla held a total of $1.3 billion in Bitcoin (BTC). Similarly, MicroStrategy was holding roughly $2.051 billion or 105,085 Bitcoin (BTC) which makes it officially the biggest Bitcoin (BTC) holder.