In the race to go public, Coinbase has been investing its cash in cryptocurrencies for years. Its balance sheet includes, for example, 230 million dollars in Bitcoin and 53 million in Ether.
Bitcoin and Ether are no longer the preserve of traders alone. Companies are now also allocating part of their cash to crypto-assets. The most notable case is Tesla with $ 1.5 billion.
However, companies have been using this strategy for many years now. Coinbase is one of them. To an expert crypto exchange, this may seem like a no-brainer. The firm, however, remained discreet about this until today.
Over 365 Million Crypto Cash
But Coinbase is preparing for its IPO. As part of this, the exchange publishes its accounts. We thus discover that the company has held crypto on its balance sheet since 2012. And it intends to make a commercial argument of it.
“Since its inception in 2012, Coinbase has listed bitcoin and other crypto-assets on its balance sheet – and we plan to maintain an investment in crypto-assets as we strongly believe in the long-term potential of the crypto-economy,” says Brett Tejpaul, head of institutional sales.
Coinbase plans to use its experience in this area to provide business advisory services. Its objective: to offer them " a trusted solution to add crypto to their cash flow. "
And according to the document (S-1) published as part of its IPO, Coinbase therefore has a significant amount of cryptocurrency in its accounts. The exchange notably has $ 230 million in Bitcoin.
The company, a future market for Coinbase
But it also does not neglect the second crypto in terms of capitalization with $ 53 million in Ether. Coinbase is diversifying its portfolio, however. Thus, he holds multiple cryptocurrencies, including $ 48.9 million in USDC, and 34 million in other unspecified tokens.
Coinbase ranks among the main companies today holding part of their cash in Bitcoin. The two main ones are MicroStrategy, whose investment is valued at over $ 4 billion. After a purchase of $ 1.5 billion, Tesla can already count on a BTC capital of 2.6 billion.
The exchange hopes to participate in the democratization of crypto within businesses and thus fuel its growth. For institutions, it is about guarding against " new risks ". And this goes through in particular " a diversified balance sheet that is sufficiently covered in relation to traditional capital markets and monetary weakening. "