Coinbase CEO Unveils $500 Billion Ethereum, Bitcoin Crypto Surprise as Market Surpasses the $2 Trillion Mark
Coinbase, which is the biggest bitcoin and crypto exchange platform in the U.S., has unveiled its intentions to incorporate crypto estimated at $500 million, to its balance sheet.
Both bitcoin and ethereum prices have spiked significantly this year. Combined, the two contribute to over half of the $2 trillion that the crypto industry is worth.
When making the announcement via twitter, Brian Armstrong, the CEO of Coinbase, said that they’d just recently gotten a nod to buy more than $500 million of crypto and then incorporate it to their current holdings.
He also mentioned that moving forward, they’d be investing 10% of all the profits gained from crypto.
In a different blog post, the firm stated that it intends to become the very first publicly-traded company that owns proof of stake assets, ethereum, DeFi tokens among other crypto assets. Coinbase market cap is estimated to be about $52 billion.
Armstrong revealed that the company’s long-term goal is to convert most of its operating capital and assets to cryptocurrencies, primarily bitcoin and ethereum.
At the beginning of this month, Coinbase revealed that its second quarter revenue summed up to over $2.2 billion. This is a sharp increment from last year’s second quarterly earnings of $186 million.
Just yesterday, it was announced that Coinbase had amassed about $4 billion in cash, in readiness for a probable regulatory crackdown. It’s also suspected that there could be a market downswing, referred to as a “crypto winter” since the April listing of shares.
Alesia Haas, Coinbase chief financial officer, revealed that the firm wants to ensure it has adequate cash reserves. This way, it will be able to continue investing and expanding its products and services in case a crypto winter occurs.