Coinbase is finally putting crypto on its balance sheet. Surprised it took this long? 😅 So are we.
The company’s board approved a purchase of $500 million in crypto, with a commitment to invest 10% of the company’s future profits into the asset class. The purchase will take place over multiple years, taking advantage of dollar cost averaging.
According to Coinbase finance chief Alesia Haas, the company will invest in “Ethereum, Proof of Stake assets, DeFi tokens,” and other assets. The allocation will be decided by “aggregate custodial crypto balances,” which means the company’s investments will be informed by what users are holding on the platform.
Many companies considering cash alternatives on their balance sheets have opted for Bitcoin. For investors looking for a way to bet on the future of crypto, Coinbase is trying to minting itself as the best option with this move.
Investors reacted kindly to the news. $COIN stock rose 3.66%. The global crypto market boosted 4.6% today.