Coinbase, America’s largest crypto exchange, has said it has received its board approval to purchase crypto worth as much as $500 million. According to Brian Armstrong, the firm’s CEO, the board’s approval of this decision will enable it to be able to put some crypto assets on its balance sheet.
Although the assets to buy are undisclosed, the company intends to use 10% of all its profits for investment in cryptocurrencies. According to him, the figure is expected to grow as the evolving crypto markets become more mature.
In the twitter announcement, Armstrong said “we recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the crypto economy matures.”
While the 10% represents a bit of the exchange’s profit, it could be huge in USD terms, tracing previous profit records. The most recent was the Q2 2021, when the exchange netted $1.6 billion profit, far above the Q1 2021 and 4,900% higher than the previous year’s result. What can be deduced from this is that the 10% of the profit would be around $160 million.
This is coming more than 24 hours after Coinbase announced its launching in Japan by partnering with Mitsubishi to expand its reach. The exchange, which boasts 70 million active users and operates in over 100 nations, decided on the MUFG partnership to tap from its over 40 million customers.