The crypto market seems to get back on track after months of turmoil and FUD. Crypto adoption and institutionalization are at their peak. Although the US $1 Trillion Infrastructure bill is not doing justice to crypto investors by imposing Crypto Tax, it does make the cryptocurrency a legit investment asset. There can’t be bigger proof that crypto adoption is real and it is getting mainstream attention.
Leading US crypto exchange and a publicly listed company Coinbase had made an announcement today to add crypto to their balance sheet. Coinbase CEO Brian Armstrong announced on Twitter today that the company’s board had approved the crypto holding, adding that Coinbase also plans to invest 10% of all profits generated into digital assets moving forward.
His tweet is accompanied by an official blog post that details their strategy for crypto holding. Coinbase will also become the first publicly traded exchange to hold Ether, DeFi tokens, and Proof-of-Stake assets on its balance sheet.
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, on our balance sheet.
Coinbase is committed to making long-term investments in the crypto sector as this investment is driven by their aggregate custodial crypto balance which means customers will drive their investment strategy. Coinbase also said that their investment will be continually deployed over a multi-year window using a dollar-cost averaging strategy and will only divest under select circumstances, such as an asset delisting from their platform.
To avoid any conflicts of interest with its customers, Coinbase will make its trades on third-party platforms or via its over-the-counter trading desk.
Crypto Treasuries reports Coinbase as the eighth-largest public company by Bitcoin holdings on its balance sheet, and the largest crypto exchange by value of BTC held in its treasury. The first on the list is no other than MicroStrategy that has bought Bitcoin multiple times during the recent dip.