• Coinbase will invest 10% of its profits on cryptocurrency in the future

  • Coinbase has declared that 10% of all profits will be invested in cryptocurrency. The exchange is one of the most well-known crypto exchanges in the world, and with their profit margins, a 10% investment in crypto will be a significant one. All crypto purchases will be recorded on the balance sheet in the future. And, according to the CEO, this percentage will continue to rise over time.

    For the past year, the exchange has made tremendous profits. In 2020, Coinbase reported a total profit of $.17 billion. If this policy had been in force at the time, Coinbase would have invested $170 million in cryptocurrency just for 2020. For the year 2021, profit margins are expected to be much higher. Given the fact that the company had gone public earlier in the year. Increasing the total value of the company.

    It was already revealed in February that the exchange kept cryptocurrency on its books, which comes as no surprise. The most important service they provide is a way for people to exchange their cryptocurrency for fiat and other cryptocurrencies. Coinbase has maintained bitcoin and other cryptocurrencies on its balance sheet since its inception in 2012, according to Brett Tejpaul, a Coinbase executive. With the intention of continuing to invest in crypto initiatives that they believe have long-term promise.

    However, the precise assets owned by the corporation on its balance sheets were not disclosed at the time of this declaration. The only one stated specifically was Bitcoin, while the rest were kept under wraps.

    Coinbase invests $500 million in cryptocurrencies.

    Coinbase CEO Brian Armstrong recently announced on Twitter that the board of directors had approved the purchase of $500 million in cryptocurrency to be added to the company’s balance sheet.

    Following the transaction, the corporation was required to file a report with the Securities and Exchange Commission (SEC) detailing the crypto-assets it had purchased. The majority of the allocated monies had been spent on Bitcoin, according to the report. Significant investments have been made in Ethereum, the second most popular cryptocurrency on the market. According to the declaration, $238 million was spent on cryptocurrencies, with $230 million going to Bitcoin and the remaining $53 million going to Ethereum.

    The amounts in the declaration also included a ten percent allocation of the company’s income to cryptocurrencies, bringing the total amount disclosed to $500 million. With future revenues, the corporation intends to strengthen its stakes in both Bitcoin and Ethereum. Also, he’s interested in investing in other promising cryptocurrencies. As a result, the corporation now has a well-balanced crypto portfolio.

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