Co-founder and CEO of Coinbase Brian Armstrong announced that his company is going to add over $500M crypto to its balance sheet. The news comes after a spike in crypto prices that surely has affected revenue in this company.
This kind of news also affects the prices more and is considered a big incentive for retail investors. When big companies announce plans to buy cryptocurrency, it incentivizes other users to buy more.
Institutional Investment Still Rules
The cryptocurrency industry has always benefited from big investors that announce bringing their money to this sector. When major investment companies plan to spend some of their money on crypto, it means that the industry is maturing and has the potential for more rewards surely.
Besides, there are many successful companies in this industry. It has shown the potential of the crypto sector with IPOs. Coinbase is one of them.
Coinbase is one of the most successful companies in the crypto sector. The firm today offers numerous crypto-related services and is adding to them every day.
Brian Armstrong, the co-founder, and CEO of Coinbase today, announced that the company plans to invest more in cryptocurrencies and invest its earnings again in the industry. It means a lot for the whole market, and even we can connect it to the recent growth in prices. Armstrong tweeted:
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
The latest announcement from Coinbase CEO can affect the market. We have seen similar announcements before that have had considerable effects, too.
When Elon Musk embraced cryptocurrencies and even said that his company (Tesla) would accept Bitcoin for buying cars, we saw a considerable spike in BTC price, followed by altcoins.
MicroStrategy is another example. Investment announcements from this company affect the market in a considerable way, too.
The latest news from Coinbase shows that the crypto industry is here to stay and grow continuously. Active companies always see big potentials in this sector. They earn a lot from their services but plan to reinvest them in the market.
Coinbase CEO even says that his company plans to focus more on crypto services, and today, they’re still offering a mix of services. It’s another signal that crypto is the most profitable business for them.
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