Brokerage firm Coinbase has the green light from its board to purchase more than $500 million worth of crypto on its balance sheet, according to a tweet from its chief executive officer Brian Armstrong.
The firm, which is known for helping publicly traded companies make large bitcoin purchases, will also be investing 10% of all future profits in crypto.
“I expect this percentage to keep growing over time as this crypto economy matures,” Armstrong said.
Coinbase, which tapped the public markets in April, has helped companies including MicroStrategy and Tesla make large crypto purchases. Firms like MicroStrategy view the move as a way to protect capital from potential inflation. It’s not clear what cryptos Coinbase would purchase.
As reported by the Wall Street Journal, Coinbase has also stockpiled billions of dollars worth of cash in the event of a crypto winter or regulatory crackdown. It could also put that capital to work to make acquisitions.
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