Coinbase to buy another $500 million in cryptocurrencies and invest 10% of future profits in cryptocurrencies

Brian Armstrong, CEO of cryptocurrency exchange Coinbase, announced today via Twitter that Coinbase has received approval from its board of directors to add $500 million in cryptocurrency assets to its balance sheet. Not only that, it will also invest 10% of all future profits in cryptocurrencies.

“I expect this percentage to continue to grow over time as the crypto economy matures,” Armstrong said.

A blog post written by Coinbase CFO Alesia Haas noted that the purchase will include Ethereum as well as other assets related to the world of decentralized finance.

“In addition to Bitcoin, we will be the first public company to hold Ethereum on our balance sheet, along with proof-of-stake assets, DeFi tokens, and many other crypto assets that support trading on our platform,” Haas wrote.

According to previous reports by BitPush, Coinbase has also reserved billions of dollars worth of cash to cope with the crypto winter or crackdowns by regulators.

In February, Coinbase released an S-1 filing showing that its cryptocurrency holdings were valued at approximately $365 million, of which $230 million was Bitcoin, $53 million was Ethereum, $49 million was stablecoins, and $34 million was other crypto assets.

Coinbase has set record quarterly profits, reaching $800 million in the first quarter and $1.6 billion in the second quarter.

The exchange, which generates most of its revenue from trading fees, benefited from high trading volumes last quarter despite a slump in cryptocurrency prices that saw Bitcoin fall from over $60,000 to $30,000.

Coinbase went public in April, helping companies such as MicroStrategy and Tesla buy large amounts of cryptocurrencies, with the latter seeing the move as a way to protect capital from potential inflation.

Armstrong said the company hopes to gradually “do more business in the crypto space.”