Coinbase CEO Says The Company Is Adding $500M in Crypto To its Balance Sheet

Coinbase CEO Brian Armstrong said the company is adding $500 million worth of crypto to its balance sheet.

The CEO announced the news via Twitter. He said that they recently got the board approval to buy cryptos and add to their existing holdings.

According to the leading U.S. exchange by trade volume, they will be investing 10% of all profit in crypto. Also, he added that he expects this rate to keep growing over time as the crypto economy matures.

In addition, Armstrong stressed the firm expects to grow the percentage of interest it allocates to crypto purchases over time.

Also, Coinbase published a blog on the same day, saying that the move will set the exchange as the first publicly traded firm to hold digital assets. This includes Ether, DeFi tokens, and Proof-of-Stake (PoS) assets on its balance sheet.

Further, the team noted,

Our crypto-asset investment allocation will be driven by our aggregate custodial crypto balances — meaning our customers will drive our investment strategy. Our investments will be continually deployed over a multi-year window using a dollar-cost averaging strategy.

“We are long-term investors and will only divest under select circumstances, such as an asset delisting from our platform,” the team said, adding that all trades will be done via their over-the-counter desk. Or else, it will be done away from their exchange to avoid any dispute of interest with our customers.

As the firm joins the list of companies holding bitcoin, the team said they might extend their allocation over time as the crypto economy grows. Also, they believe that in the future, more and more companies will hold crypto on their balance sheet.