Coinbase plans to invest up to $500 million in the purchase of cryptocurrencies, as disclosed by the company’s CEO, Brian Amrstrong. This amount includes the allocation of 10% of the company’s profits to the purchase of cryptocurrencies.

Coinbase will invest 10% of its profit directly in cryptocurrencies

“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 CEO said in a tweet.

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.

— Brian Armstrong (@brian_armstrong) August 19, 2021

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Coinbase announced a total profit of $1.7 billion in 2020. In other words, the exchange would have the potential to invest up to $170 million in cryptocurrencies. It is worth noting that the board’s approval only authorizes the investment of the company’s future profits.

According to a report sent to the Securities and Exchange Commission (SEC), Coinbase’s total reserves have $283 million in cryptocurrencies, with $230 million in Bitcoin (BTC) and $53 million in Ethereum (ETH).

Through its new policy, Coinbase intends to strengthen its BTC and ETH positions, but also intends to open positions in other cryptocurrencies. In this way, the company intends to build a diversified portfolio of cryptocurrencies in all sectors.

“We will become the first publicly traded company to keep ETH, Proof of Participation (PoS) assets on balance, DeFi tokens and many other cryptoactives present on our platform. Besides, of course, the BTC”, said the company.