The cryptocurrency firm Coinbase is adding $500 million in cryptocurrencies to the company’s balance sheet, according to Coinbase CEO Brian Armstrong. The Coinbase founder tweeted the message to his followers that the company has “received board approval to purchase over $500 million” in order to add the funds to the firm’s balance sheet.
Coinbase Gets Clearance From Board to Add $500 Million to Firm’s Treasury
Coinbase is showing that the company is a believer in crypto assets and is demonstrating this by leveraging a reserve balance of digital currencies. On Thursday, the founder and CEO of the company told his 771,000 Twitter followers that Coinbase was approved to purchase $500 million in crypto assets. The Coinbase CEO also noted that 10% of the firm’s profits will be invested in the crypto economy.
“We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings,” Armstrong tweeted: “And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the [crypto economy] matures.” Armstrong added:
Hopefully, over time we can operate more of our business in crypto – today it is still a mix.
Not the First Time Coinbase Disclosed Crypto Balance
This is not the first time Coinbase has come forward to disclose the company’s crypto balance sheet. Coinbase entered the conversation when numerous corporate entities like Microstrategy, Tesla, and Square announced keeping bitcoin locked into the company’s treasuries. At the end of February 2021, Coinbase executive Brett Tejpaul explained in a blog post that the company held BTC and other crypto assets on its balance sheet.
Tejpaul also said “we plan to maintain an investment in crypto assets as we believe strongly in the long-term potential of the [crypto economy],” which was similar to Armstrong’s recent statement. “Since our founding in 2012, Coinbase has held bitcoin and other crypto assets on our balance sheet — and we plan to maintain an investment in crypto assets as we believe strongly in the long-term potential of the [crypto economy],” Tejpaul added at the time.
However, Armstrong did not disclose the specific names of the crypto assets the company aims to hold on its balance sheet.
Source: Bitcoin news