After recently being on top of the headlines for buying $500 million in crypto, Coinbase has revealed its plan for future investments. This platform has clarified that it will start taking a part of its profits in future and invest the amount into crypto.
They have stated that 10% of their gains will go as digital asset investment. This is being placed as an important milestone for the platform. Furthermore, every digital asset purchase, on Coinbase, with cryptocurrency will be recorded in a detailed balance sheet from now on.
What was the reason behind this decision?
Coinbase is listed as one of the most prominent crypto exchange platforms around the world. This means they receive a significant amount of money in the form of profit from all the trading done on their platform. And 10% of this total gain will surely be a massive input towards the crypto industry.
The CEO of Coinbase, Crain Armstrong, has stated that they are planning on increasing this percentage with time. The main reason behind taking this decision could be the hefty profits the platform is making through a crypto exchange.
In 2020, it was recorded that the overall gains of Coinbase were $17 billion. This means the platform will have $170 million worth of crypto holdings for 2020 itself.
These numbers are expected to go higher this year and for upcoming years. Also, since the company has made itself public earlier in 2021, its total valuation has spiked dramatically. Furthermore, the company has been maintaining a balance sheet for all cryptocurrencies on their platform from the start of their venture.
