Coinbase plans to add $500M worth of crypto to its balance sheet

Brian Armstrong, Coinbase CEO, has announced that the company’s board had approved the crypto spending spree, adding that the exchange also plans to invest 10% of all profits generated into digital assets moving forward.

Armstrong also indicated the company hopes to increase the percentage of profit it allocates to cryptocurrency purchases over time.

The blog post published on the same day announces that the move will establish the exchange as the first publicly-traded company to hold Ether, DeFi tokens, and Proof-of-Stake (PoS) assets on its balance sheet.

The announcement highlighted Coinbase’s commitment to making long-term investments in the crypto sector.

“Our investments will be continually deployed over a multi-year window using a dollar-cost averaging strategy. We are long-term investors and will only divest under select circumstances, such as an asset delisting from our platform,” stated the announcement.

The announcement adds that future investments may be informed by its customers’ holdings, suggesting the exchange may add an asset to its balance sheet should users make significant custodial deposits of a given cryptocurrency.

Coinbase will make its trades on third-party platforms or via its over-the-counter trading desk to avoid creating conflicts of interest with its customers.

The news about new expenditures on crypto comes just a day after Coinbase completed its Japanese launch in partnership with Mitsubishi UFJ Financial Group (MUFG). Coinbase will also gain access to Mitsubishi's customer base of about 40 million customers as part of their agreement.

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