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Tuesday, September 28, 2021

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Coinbase starts saving in bitcoin and ethers with a contribution of $ 500 million

Cryptocurrency exchange Coinbase began investing in digital assets as business policy. The US company made a first disbursement of $ 500 million to acquire multiple crypto assets, including: bitcoin (BTC), ethers (ETH), decentralized finance tokens (DeFi) and Proof of Stake (PoS) assets.

The company will also invest 10% of all its quarterly earnings in crypto. Coinbase’s move points to gradually divest from transactions in fiat currencies such as the dollar. The exchange also aims to promote greater adoption and make cryptocurrencies more useful.

“Most of Coinbase’s corporate financial transactions, such as how we pay our suppliers, employees or invest corporate cash, continue to weigh heavily on fiat. We are in a strong position to lead by example and duplicate how we can enable the adoption and utility of cryptocurrencies, ”the exchange explained.

Coinbase claimed to be the first publicly traded company to hold ethers, DeFi tokens and PoS project cryptocurrencies on its corporate balance sheets (beyond bitcoin). It is not clear what are the other digital assets in which the exchange house invested.

Coinbase, new bitcoin hodler

Coinbase’s investments in cryptocurrencies will be long-term, that is, the exchange house would hold its positions for a period of 5 years or more. However, the company indicated that, in certain circumstances, they could dispose of a cryptoasset. Some of these hypothetical scenarios would be that the exchange withdraws a cryptocurrency from its platform.

For the acquisitions of digital assets, Coinbase will use two methods: it will buy the cryptocurrencies through its over-the-counter market service or it will use the services of other exchanges to “avoid any conflict of interest with our clients.”

Coinbase stock listing since April 2021 on the Nasdaq market in New York. Source: Nasdaq.com.

It is striking that Coinbase, one of the first and largest companies in the bitcoiner ecosystem, have decided to invest or save in cryptocurrencies after 9 years of its founding. The amount invested by the exchange, although it is important, helps it to acquire less bitcoins than those it was able to buy in 2012 or 2013, for example.

Coinbase captured international media attention this year after entering the stock market, a fact reported by CriptoNoticias. The company has been listed on the Nasdaq since last April. Its shares, however, have fallen in price from $ 328 per unit, to the current $ 257. In June the price had a downward trend with a commercialization that touched 220 dollars.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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