The following is from a recent edition of Deep Dive, Bitcoin Magazinepremium markets press release. To be one of the first to receive these statistics and other analysis of the chain’s bitcoin market directly in your inbox, subscribe now.
“We are committed to investing $ 500 million in cash and cash equivalents in a diverse portfolio of cryptographic assets. In the future, we will also allocate 10% of the quarterly net profit to this same portfolio. ” The Coinbase blog
In a tweet from Coinbase CEO Brian Armstrong on Thursday night, it was announced that Coinbase would acquire $ 500 million in a “diverse portfolio of cryptocurrencies” and an interesting note is that the allocation of the portfolio will be decided based on the custody balances of the assets held in Coinbase for its consumers.
“Our allocation of investments in cryptographic assets will be driven by our aggregate cryptographic custody balances, which means that our clients will drive our investment strategy. Our investments will be continuously deployed in a multi-year window using an average strategy. of costs in dollars “.
Going deeper, we can make some estimates about the size of the bitcoin allocation that Coinbase will make using exchange balances and the figures reported in the company’s recent earnings report during the second quarter.
The Q2 report, which was just published on August 10, 2021, reported figures ending June 30, 2021.
The company reported that it had $ 180 billion worth of assets on the platform at the end of the second quarter and, using data from Glassnode, we can see that there was approximately $ 90 billion bitcoin in Coinbase on the same date.
While this number is definitely dynamic, this would mean that Coinbase will allocate 50% of the $ 500 million committed to Bitcoin and 5% of quarterly net revenue to Bitcoin.
Last quarter, Coinbase earned $ 1.6 billion in net revenue, which would translate into an approximately $ 80 million purchase.
