Coinbase to acquire crypto assets worth more than $500 million and reinvest 10% of profits

The cryptocurrency exchange Coinbase will acquire digital assets worth more than $500 million and, going forward, will reinvest 10% of all profits in them. This was disclosed by its chief executive, Brian Armstrong.

Hopefully over time we can operate more of our business in crypto — today it is still a mix.

— Brian Armstrong (@brian_armstrong) August 19, 2021

According to him, the board of directors approved the decision. The stake will grow over time as the crypto economy matures, Armstrong promised.

“I hope that over time we can run a larger part of our operations in cryptocurrency. For now it is still a mix with fiat,” he added.

In the Form 10-Q for the second quarter filed with the 10-Q for the SEC, the bitcoin exchange said that as of June 30, 2021 it owned cryptocurrencies worth $222.7 million, not including $145 million in USDC (earlier in the year — $62.3 million). Coinbase invested $105.4 million in Bitcoin, $29.3 million in Ethereum, $88 million in other assets.

The fair value of the digital currencies, excluding USDC, was valued by the exchange at $480.2 million.

Earlier, Coinbase’s total revenue for the second quarter was $2.2 billion, including $1.9 billion from transaction fees. Net income reached $1.6 billion.

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