Coinbase Global Inc (NASDAQ:COIN) is planning to add $500mln in cryptocurrency to its holdings, the company’s co-founder and chief executive Brian Armstrong tweeted.
“We recently received board approval to purchase over $500mln of crypto on our balance sheet to add to our existing holdings,” the CEO said in the tweet.
He added that in future the cryptocurrency exchange operator will invest 10% of all profit in crypto and that this percentage is expected to keep growing over time “as the cryptoeconomy matures”.
We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we'll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.
— Brian Armstrong (@brian_armstrong) August 19, 2021
In a blog posting, Coinbase’s chief financial officer Alesia Haas said: “Today, the majority of Coinbase corporate financial transactions, such as how we pay our vendors, employees, or invest corporate cash, remain heavily weighted in fiat. 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.”
Coinbase has reportedly built up a hoard of around US$4bn in cash to tide it over what could be a difficult period.
“We want to ensure that we maintain those cash reserves so that we can continue to invest and continue to grow our products and services in the event that we go into a crypto winter,” Haas told the Wall Street Journal on Wednesday.
READ: Coinbase revenues rocket over 1,000% amid wild swings in crypto markets