Coinbase CEO Brian Armstrong says that the cryptocurrency exchange will purchase digital assets worth more than half a billion dollars to add to its existing holdings.
Armstrong says that Coinbase will be allocating 10% of its quarterly profits toward the purchase of crypto assets in the future.
“We recently received board approval to purchase over $500 [million] 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 cryptoeconomy matures.”
In a new blog post, Coinbase says that the list of cryptocurrencies it will add to its balance sheet includes Bitcoin and Ethereum along with other digital assets that are supported by the exchange.
“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.”
The popular crypto exchange also says it will be a long-term holder and will only sell its crypto assets under special circumstances.
“We are long-term investors and will only divest under select circumstances, such as an asset delisting from our platform.”
Coinbase says it will purchase the crypto assets away from the exchange to prevent conflict-of-interest issues with users.
“All trades will be executed via our over the counter desk or away from our exchange to avoid any conflict of interest with our customers.”
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