Coinbase to load up balance sheet with digital assets
By Rachel Rigby
16:06, 20 August 2021
US-based cryptocurrency exchange platform Coinbase plans to convert $500m of its own balance sheet into cryptocurrency and allocate 10% of its quarterly earnings into crypto assets in future, the company announced via its blog this week.
Alesia Haas, chief financial officer at Coinbase, explained the company’s reasons as: “We’re in a strong position to lead by example and double down on how we can enable crypto adoption and utility, starting with how we operate our business. We have committed to invest $500m of our cash and cash equivalents.
“Going forward, we will also allocate 10% of quarterly net income into a diverse portfolio of crypto assets. This means we will become the first publicly traded company to hold Ethereum, proof-of-stake assets, DeFi tokens and many other crypto assets supported for trading on our platform, in addition to bitcoin.“
Increasing value
Coinbase Global Inc – better known as Coinbase – was founded in 2012 by Brian Armstrong and Fred Ehrsam. Despite working entirely remotely and having no physical office, the company has been quite successful, becoming the largest cryptocurrency exchange in the US by traded volume as of March 2021.
By 2018, Coinbase Global was worth $8.1bn. In December 2020 it filed to go public and to have a direct listing with the Securities and Exchange Commission (SEC), and went public on the Nasdaq exchange in April 2021 via a direct listing. Its market cap has since risen to $85bn, with the company valued at $51.55bn.
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