{"id":1037314,"date":"2021-08-20T03:29:41","date_gmt":"2021-08-20T07:29:41","guid":{"rendered":"https:\/\/cryptopotato.com\/?p=135052"},"modified":"2021-08-20T03:29:41","modified_gmt":"2021-08-20T07:29:41","slug":"coinbase-to-buy-500m-of-cryptocurrencies-and-invest-10-of-profits-says-ceo","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/coinbase-to-buy-500m-of-cryptocurrencies-and-invest-10-of-profits-says-ceo\/","title":{"rendered":"Coinbase to Buy $500M of Cryptocurrencies and Invest 10% of Profits, Says CEO"},"content":{"rendered":"\n
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America\u2019s largest digital asset exchange will expand its cryptocurrency holdings on the balance sheet with a $500 million allocation, said the company\u2019s CEO, Brian Armstrong. Furthermore, he promised that the firm will invest 10% of its profit going forward.<\/p>\n

Coinbase to Put More Crypto on Balance Sheet<\/h2>\n

Brian Armstrong, the chief operating officer of Coinbase, took it to Twitter to indicate that the company has received board approval to purchase over $500 million of cryptocurrencies. Thus, the exchange will expand its existing holdings, but he didn\u2019t reveal what digital assets Coinbase currently holds or plans to buy.<\/p>\n

Additionally, the largest US-based trading platform will invest 10% of all profits from now on in cryptocurrencies. Armstrong expects this percentage to \u201ckeep growing over time as the crypto-economy matures.\u201d<\/p>\n

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We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we\u2019ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.<\/p>\n

\u2014 Brian Armstrong (@brian_armstrong) August 19, 2021<\/a><\/p>\n<\/blockquote>\n

The 10% allocation coming from profits could be quite significant in USD terms, at least according to recent history. The company reported<\/a> in Q2 2021 record-breaking results, far surpassing the numbers from Q1, with $1.6 billion in net profit. This was a 4,900% surge from the same period in 2020.<\/p>\n

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Consequently, a 10% investment in crypto would mean somewhere around $160 million per quarter, even if Armstrong\u2019s projections that the industry will continue growing don\u2019t materialize.<\/p>\n

The executive also outlined hopes that one day the exchange will be able to \u201coperate more of our business in crypto,\u201d as today it\u2019s \u201cstill a mix.\u201d<\/p>\n

Coinbase Goes to Japan<\/h2>\n

Just a day before Armstrong\u2019s announcement, the firm outlined expansion plans. The statement<\/a> informed that the exchange, with nearly 70 million active users, operating in over 100 nations, has launched in Japan \u2013 or, as it described it \u2013 \u201cone of the first countries to embrace crypto and one of the largest markets by crypto trading volumes in the world.\u201d<\/p>\n

To do so, Coinbase has partnered with a prominent local bank \u2013 Mitsubishi UFJ Financial Group (MUFG). Thus, Japanese customers will be able to access the trading venue through the MUFG Quick Deposit platform.<\/p>\n

The US exchange will release retail products first, including the top five assets by trading volume, and will add more products shortly. Future plans also include introducing localized versions of other services, such as advanced trading and Coinbase for Institutions.<\/p>\n

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