Cryptos

Coinbase will invest 10% in crypto in the future

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Coinbase announced plans to invest 10% in crypto. The exchange is one the largest crypto exchanges in the world. With their profit margins of 10%, it will be a significant investment in crypto. All crypto purchases will be kept in the balance sheet. The CEO expects this percentage to rise over time.

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The exchange has made huge profits in the last year. Coinbase had reported a profit of $ 0.17 trillion in 2020. Coinbase would have invested $ 170million in crypto holdings if this directive had been in place. For 2021, profit margins are expected to be even greater. The company went public earlier in the year. Increase its total market value.

It was revealed that the exchange had cryptos on its balance sheet in February. This is not surprising. Their main offering is the ability to trade crypto for fiat currencies or other cryptocurrencies. According to Brett Tejpaul (executive at Coinbase), the company has had bitcoin and other cryptocurrencies in its balance sheet since its creation in 2012. They plan to continue investing in crypto projects with long-term potential.

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It was not known at the time that this disclosure was made what assets the company had on its balance sheet. Bitcoin was the only item named, while all other assets were kept private.

Coinbase invests $ 500 Million in crypto

Brian Armstrong, Coinbase CEO, recently announced via Twitter that he has been approved by the board to purchase $ 500 million worth crypto to add to the company’s balance sheets.

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The company was required to file a disclosure with SEC after the purchase describing the crypto assets that it had purchased. The ReportIt was shown that the company spent most of the allocated funds on Bitcoin. The company made significant investments in Ethereum, the second most popular cryptocurrency on the market. According to the disclosure, $ 238 million was spent in cryptocurrencies. $ 230 million was invested in Bitcoin and $ 53 million in Ethereum.

The total disclosure figure also included 10% of the company’s profits being allocated to cryptocurrency, bringing it to $ 500 millions. The company plans to increase its positions in Bitcoin and Ethereum, with future profits. It is also interested to open positions in other promising cryptocurrencies. This will ensure that the business has a well-balanced cryptocurrency portfolio.

Crypto market cap remains at $2 trillion | Source: TradingView.com - Crypto Total Market Cap
Featured image taken from The Guardian. Chart from TradingView.com




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