Coinbase to Buy Crypto Worth $500 Million as Crypto Adoption Drive Heightens

Brian Armstrong, the co-founder, and CEO of Coinbase, made a stunning announcement recently. The platform intends to buy around $500 million worth of cryptos, according to a tweet. 

The news follows a go-ahead by the platform’s board, according to the CEO’s tweet. Coinbase will make the purchases on its balance sheet to shore up its holdings.

Part of a Bigger Plan

The purchase is quite possibly the tip of the iceberg. According to the same tweet, Coinbase will commit 10% of its profits to purchase cryptocurrencies every year. Such news is very encouraging to crypto projects since the exchange did not specify any targeted coins.

Even more encouraging is the news that the 10% of profits to be converted into crypto savings currently is just the start of more to come. Brian Armstrong expects the figure to be on the increase moving forward.

KYC and Audit Solutions For Every Project!

Lead By Example

Forrays by Coinbase towards incorporating cryptos into its financial base and transactions, surprisingly don’t end there. The USA’s leading crypto exchange platform hinted at striving to make key changes to their transactions.

According to a piece in their blog, a huge overhaul might be in the pipelines. The CFO, Alesia Haas, noted how a huge portion of the corporate’s transactions leans mostly on fiat. She notes the importance of the firm leading by an example given its strong market position.

The hint here is that coinbase plans to improve crypto usage in paying vendors, employees and even reinvesting its corporate cash.

Coming to Maturity

The move by coinbase to purchase such a high value of cryptocurrencies as a start is unprecedented. It is a good sign that crypto markets are coming to maturity. Analysts expect the corporate world to take it as a positive sign towards the utilization of digital assets.

Btc

Bitcoin

$27.941
price

0.89264%
price change

TRADE NOW

While institutional traders have been interested in trading cryptos as whales, they have all been profitable investments. Such a huge purchase and the commitment to convert 10% into crypto savings is a new move. Mass crypto adoption continues to become more of a possibility if other firms follow suit.