Coinbase Set To Invest A Further $500 million In Cryptocurrency

Brian Armstrong, Coinbase CEO has revealed that the firm plans to invest a further $500 million worth of cryptocurrency on its balance sheet.

The decision to pump in this amount of money happens after given the go-ahead by the board. Besides such a huge investment, the company will also go ahead and allocate 10% all the entire future profits to cryptocurrency, a move set to give a solid boost to the ecosystem.

Coinstep’s decision to invest $500 million dollars worth of cryptocurrency is a big step from its current holdings that are estimated to be at around $365 million according to the company’s recent S-1 filing with the US Securities and Exchange Commission.

Investing $500m is a big move that will move Coinbase very close to Tesla’s $1.5bn investment in Bitcoin that happened earlier this year. In a tweeter post, Brian Armstrong said: “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 crypto-economy matures.”

While the 10% might seem little, actually it could up proving significant. Just recently, the company posted a huge $800m in profits in Q1 and managed to record double figures in Q2, meaning that from now onwards, the crypto exchange will be steadily investing in crypto assets.

Of importance to note, though in the last few months, Q3 results somewhat fell down as Bitcoin dropped from an all-time high from a figure of around $64,000 to $57,000. But again, the currency has been steadily realizing some recovery and currently stands at $46,885. If you are thinking of spending some additional time on crypto in a good environment, you may want to check out or Best Crypto Sites with Cashback offers.