Coinbase, Known As The “Largest Cryptocurrency Exchange In The United States,” Revealed That It Intends To Purchase $500 Million In Cryptocurrency And Include It On Its Balance Sheet To Increase The Company’s Current Cryptocurrency Holdings.
Coinbase Ceo Brian Armstrong Said On Twitter Earlier Today (20) That This Plan Has Been Approved By The Company’s Board Of Directors. He Went On To Add That Coinbase Will Also Invest 10% Of All Profits In Cryptocurrencies In The Future.
Brian Armstrong Said That As The Crypto Economy Matures, It Is Expected That Coinbase’s Investment In Cryptocurrencies Will Continue To Increase.
On The Same Day, Coinbase Announced On Its Official Blog To Revise Its Investment Policy, Becoming The First Listed Company To Hold Bitcoin, Ether, Defi Tokens And Pos Assets On The Balance Sheet At The Same Time.
This Announcement Underscores Coinbase’s Commitment To Long-term Investment In The Cryptocurrency Field And States:
We will use the “average cost method” (commonly known as: fixed-term investment method) strategy for multi-year investment. We are long-term investors and will only withdraw funds under certain circumstances, such as assets being removed from our platform.
The Article Added That Coinbase’s Future Investment May Be Based On The Customer’s Currency Holdings, Which Indicates That If Users Buy A Particular Currency In Large Quantities In The Future, Coinbase May Also Add This Asset To Its Balance Sheet.
Coinbase Went On To State That The Company Will Conduct Transactions On Third-party Platforms Or Through Its Over-the-counter Trading Desks To Avoid Conflicts Of Interest With Customers.
According To Crypto Treasures Data , Coinbase Is Currently The Fifth Listed Company In Terms Of Bitcoin Holdings. Coinbase Announced Its Second-quarter Financial Report Last Week . Benefited From The Cryptocurrency Investment Boom And Currency Price Fluctuations, It Has Brought A Lot Of Fee Income To Coinbase, And Both Revenue And Profit Exceeded Analyst Expectations.
In An Interview Recently, The Chief Financial Officer Of Coinbase Stated That The Company Has Accumulated Us$4 Billion In Cash Reserves In Order To Prepare For Future Regulations And Market Risks. They Have Performed Multiple Stress Tests To Ensure That The Exchange Can Smoothly Ride Through The Market. Bad Situation.