Coinbase company is planning to invest in Ethereum Proof of Stake, DeFi tokens, and other cryptocurrencies. In his statement in a recent tweet, Coinbase CEO Brian Armstrong says that he will Buy $500 million in crypto.
He plans to achieve this by allocating 10% of the company’s profit in the year’s quarter to buy crypto. According to Armstrong, he expects this allocation to grow as the market matures.
This shows that the company is ambitious to increase its cryptocurrencies services and operations, which centre around trading. However, Armstrong hopes that they can work on more business in crypto.
This news comes shortly following, Palantir showing results that it bought $50 million in the worth of gold. It will also accept customers’ payments in Bitcoin, although none of the customers has done so.
Other Companies into Bitcoin
However, Coinbase is not the only company to be exposed to bitcoin on its profits. Jack Dorsey’s payment company Square (SQ) has also been buying thousands of bitcoins with around 5% of its profits in BTC.
Elon Musks released $1.5 billion for bitcoin recently. He also expects EV to resume their payments with Bitcoin. Aside from this, his venture SpaceX also owns some BTC.
How can we forget the Galaxy Digital? Its CEO Mike Novogratz quickly pointed out that his firm has been doing well since it adopted bitcoin.
Microstrategy is now including Bitcoin in its holdings. With the help of Coinbase, these companies have been able to shield themselves against inflation and the potential devaluation of the dollar.
About Coinbase
Wall Street Journal’s report says that Coinbase has an increase of $4 billion in cash to weather regulation winds.
The company still has plenty of cash on hand despite the 10% allocation for crypto portfolio expansion.
The shares of Coinbase in cryptos are up nearly 4%, inching closer to the $260 million mark.
Armstrong also mentioned that the exchange would determine whether the users of the Coinbase platform will be active.
In addition to Bitcoin, Coinbase will buy more Ethereum and other DeFi related coins.
This means that the company is the first exchange company to trade and hold Ethereum PoS and DeFi tokens and many other cryptocurrencies supported by the platform.
It seems that adding to its crypto collection is not the only thing in the pipeline by Coinbase. There is also a plan to start a crypto app store inspired by Apple’s storefront.
According to Armstrong, Coinbase aims to allow any app built on DeFi to be accessible to crypto platform users. This will be possible by joining a customer’s wallet with his identity.
Apple has influenced Coinbase’s thinking after the iPhone maker built Apple Store, including other Apps within it.
Bottom Line
It looks like Coinbase is rising to be a strong crypto exchange after expanding itself in this venture. What then is left for Coinbase than to fly higher. This is a turnover for Armstrong, making him and Coinbase, in general, Kings among the transaction companies.