Coinbase and great progress in cryptocurrency
Coinbase CEO Brian Armstrong announced via Twitter today that his publicly traded Nasdaq company has obtained Board approval to add $500 million in cryptocurrency to its stability sheet.
Not only that, but Coinbase will put 10% of all future earnings into cryptocurrencies.
In February, as Coinbase was once making ready for a direct listing on the Nasdaq, Coinbase posted an S-1 file showing that it held $365 million in cryptocurrency, break up between $230 million in Bitcoin, And $53 million in Ethereum, $49 million in stablecoins, and $34 million in other cryptocurrencies.
Although Coinbase's holdings make it the fourth greatest of all corporations that very own Bitcoin, two of the three organizations that preceded it - cloud software corporation MicroStrategy and electric powered auto maker Tesla - bought their first Bitcoin. Over the past year, Coinbase has been in the crypto arena when you consider that 2012.
Why did Coinbase figure out to save its assets in the structure of cryptocurrencies?
Some agree with that Coinbase, a cryptocurrency company, has a distinct view of its belongings and balance sheet.
The company's consecutive record-breaking quarterly profits, first attaining $800 million in the first quarter of 2021 and then $1.6 billion in the 2d quarter of 2021, convinced Coinbase's board of administrators that it had room to diversify its holdings.
Coinbase, which makes most of its money from transaction prices on its cryptocurrency exchange, benefited as trading volumes multiplied over the ultimate quarter no matter the crash in cryptocurrency prices, as Bitcoin slipped from above $60,000 to $30,000.
According to the CEO of Coinbase:
Coinbase wishes to run more of its cryptocurrency business.
For now, the balance sheet is still a mix.
In a statement, the founder of “Coinbase” hinted at the possibility that most of the company’s belongings will turn out to be in the shape of cryptocurrencies in the future.