Coinbase, the major U.S. bitcoin and cryptocurrency exchange that made a much-hyped Nasdaq NDAQ debut earlier this year, has revealed it plans to add $500 million worth of crypto to its balance sheet.
The bitcoin and ethereum price, combined making up more than half of the $2 trillion crypto market, have surged this year, sparking a huge rally in many smaller cryptocurrencies (subscribe now to Forbes' CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains.)
Sign up now for the free CryptoCodex—A free, daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekdayCoinbase has become one of the world's biggest bitcoin, ethereum and cryptocurrency on-ramps for the ... [+] crypto economy and has raked in billions of dollars in profit thanks to the soaring price of cryptocurrencies. Getty Images
"We recently received board approval to purchase over $500 million of crypto on our balance sheet to add to our existing holdings," Coinbase chief executive Brian Armstrong announced via Twitter. "And we'll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the crypto-economy matures."
In a blog post, the company, which now boasts a market capitalization of $52 billion, said it will "become the first publicly-traded company to hold ethereum, proof of stake assets, decentralized finance (DeFi) tokens, and many other crypto assets supported for trading on our platform, in addition to bitcoin, on our balance sheet."
Armstrong indicated Coinbase eventually plans to convert far more of its operating capital and assets to bitcoin, ethereum and other cryptocurrencies. Earlier this month, Coinbase said it brought in more than $2.2 billion in its second quarter, up from just $186 million during the second quarter of last year.
"Hopefully over tim...