- Coinbase is adding about $500 million worth of crypto to its balance sheet.
- In its move to expand globally, the crypto firm has partnered with MUFG in Japan.
Top crypto exchange platform Coinbase has revealed plans to purchase over $500 million worth of cryptocurrency. CEO Brian Armstrong revealed the news on the crypto purchase by Coinbase in a tweet posted on the 20th of August. In less than 24 hours, the tweet has gained the attraction of the crypto community, generating a lot of comments and other positive reactions.
According to the company’s CEO, Coinbase has received approval from the board to move on with the crypto purchase, adding the acquired crypto to their existing holding. He added:
And we’ll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over as the cryptoeconomy matures.
Speaking further in a separate tweet, Armstrong said that Coinbase hopes to conduct more outfits business in crypto. According to the CEO, it is currently “a mix.”
Coinbase operates a large percentage of its corporate financial transactions in fiat currency. The crypto company pays its vendors and employees in cash.
Coinbase to purchase $500 million worth of crypto
Also, Coinbase announced its plan to invest $500 million of its “cash and cash equivalents” as a part of a change in its investment policy. The company stated its belief in a future where people will begin to buy, sell, spend and earn in crypto.
Coinbase mentioned in the press release that the new development is a new landmark for the company.
This means we will become the first publicly traded company to hold Ethereum, Proof of Stake assets, DeFi tokens, and many other crypto assets supported for trading on our platform, in addition to Bitcoin, on our balance sheet.
According to the company, Coinbase’s investment in the crypto space will be long-term. The crypto company explained that its investment would continue to be deployed “over a multi-year window using a dollar-cost averaging strategy.
Furthermore, Coinbase noted that its customers’ holdings may influence its future investment strategy. As such, the company may add more assets to its balance sheet as customers make custodial deposits of certain cryptocurrencies.
In addition, Coinbase said it would conduct its trades through its over-the-counter desk or away from its exchange to avoid any form of conflict of interest with its users.
Coinbase expands to Japan
The announcement on the crypto purchase came shortly after Coinbase partnered with Japanese banking giant Mitsubishi UFJ Financial Group (MUFG). Coinbase will have access to the bank’s 40 million customers. As a result, the joint venture will help Coinbase expand its crypto services to a broader audience as
Coinbase assured that it would fully comply with local regulations in the country. The company also revealed its aim to become the easiest and most-depended crypto exchange platform in Japan.