Sunday, February 5, 2023

US-Based Crypto Exchange Coinbase Plans To Buy Crypto Worth $500 Million

US-based cryptocurrency exchange Coinbase is planning to integrate cryptos worth half a billion dollars, to its balance sheet.

On August 20, Brain Armstrong, the CEO of Coinbase, announced that the company’s board had approved the crypto spending spree. He further added that the US-based crypto trading platform is also planning to invest 10 percent of its profit into digital assets moving forward.

Over the period of time, if the profit generated by the company increases, then Coinbase would also increase the percentage of crypto allocation.

Coinbase published a blog post informing that with its recent move, the exchange would be established as the first publicly traded company to hold Ether, DeFi tokens and Proof-of-Stake assets on its balance sheets.

The public statement released by Coinbase specified that the exchange has been planning to make a long-term investment in a crypto sector. The announcement reads, “Our investments will be continually deployed over a multi-year window using a dollar-cost averaging strategy. We are long-term investors and will only divest under select circumstances, such as an asset delisting from our platform.”

Notably, the crypto exchange would be using third-party platforms to trade cryptos. It may also use the over-the-counter trading desk to avoid creating conflicts of interest with the customers. 

The report released by Crypto Treasuries has stated that presently, Coinbase is the eighth-largest public company around the world by Bitcoin holdings on its balance sheets and the largest crypto trading platform by the value of BTC held in its treasury.

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