World’s largest cryptocurrency exchange Coinbase, has revealed plans to invest $500 million in cryptocurrencies. The top US-based cryptocurrency exchange confirmed the plans and also said that they would be reinvesting 10% of all profits generated into digital assets.
Coinbase CEO, Brian Armstrong, confirmed the plans on his Twitter handle. He also said that they will gradually increase the percentage of profits invested to buy digital assets in the coming years. With the new development, Coinbase will also be one of the first publicly traded companies to hold DeFi tokens on its balance sheet.
In its announcement, Coinbase said: “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.”
Recently, Coinbase reported a whopping 4,900% increase in its year-on-year revenue for the second quarter of 2021. The top crypto exchange has also partnered with a Japanese banking firm to extend its crypto exchange services in Japan.