· Coinbase to invest $500M in its balance sheet.
· The firm aims to become the first publicly traded company holding DeFi tokens, Ether, and other digital assets.
· The exchange to reinvest 10% of net income into the new asset class.
A board approval has finally allowed Coinbase to boost its balance sheet with a $500M investment in cryptocurrencies. The firm plans to reinvest future profits to the new asset class.
Coinbase continues to be one of the leading exchanges in crypto trading, with a disclosed hold of more than $365M in cryptocurrencies, following Tesla and MicroStrategy, some of the top digital asset holders.
In revenue, Coinbase managed to exceed the second-quarter estimates of $1.78B by generating $2.23B with a net profit of $1.6B, marking a 4900% increase compared to the numbers from the previous year.
Coinbase has experienced high trading volumes over the last quarter through transactions fees. The exchange has announced changes in its investment policies while committing to invest $500M in cash and crypto equivalents, with a plan to reinvest 10% of the profits back in the project.
With this boost, Coinbase will become the first publicly traded company to hold digital assets such as Proof of Stake Crypto, Ethereum, and DeFi tokens.