Coinbase chief executive Brian Armstrong has revealed that the company plans to put another $500m worth of crypto on its balance sheet.
The decision comes with the approval of the board. Not only that, but the company will be allocating 10% of all future profits to cryptocurrency, giving the ecosystem a solid boost.
This is a huge step-up from Coinbase's current holdings, which are estimated at around $365m based on its S-1 filing with the US Securities and Exchange Commission (SEC).
Another $500m will take the company closer to Tesla's $1.5bn investment in Bitcoin from earlier this year.
In a tweet, Armstrong said: “We recently received board approval to purchase over $500m of crypto on our balance sheet to add to our existing holdings. And we'll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures.”
The 10% Armstrong speaks about could prove quite significant. Coinbase posted $800m in profits in Q1 and doubled that amount in Q2, meaning that the crypto exchange will be investing steadily in crypto assets moving forward.
However, Q3 results may slow down as Bitcoin went from an all-time high at around $64,000 to $24,000 over the past months.