Coinbase Global (COIN) shares rose Friday after Chief Executive Bruce Armstrong said the country’s largest crypto-assets exchange ws putting its own money into cryptocurrency.
“We recently received board approval to purchase over $500 million of crypto on our balance sheet to add to our existing holdings,” Armstrong tweeted.
“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.”
Further, “Hopefully over time we can operate more of our business in crypto,” he said. “Today it is still a mix.”
Coinbase recently traded at $257.78, up 3.8%. It slumped 24% from its first day of trading April 14 through Thursday.
Earlier this month, Coinbase reported second-quarter results that creamed estimates.
Net income registered $1.6 billion, or $6.42 a share, up from $32 million a year earlier. There’s no year-earlier per-share figure because Coinbase went public only this April.
Analysts forecast profit of $2.66 a share for the latest quarter.
Revenue soared to $2.22 billion in the quarter from $186 million a year earlier. The FactSet analyst consensus called for $1.79 billion in the latest quarter.
Last month, Cathie Wood-led ARK Investment Management shifted some of its capital into Coinbase amid a dip in its stock price, while shedding shares in Nvidia (NVDA) - Get NVIDIA Corporation Report and Shopify (SHOP) - Get Shopify, Inc. Class A Report.
The investment firm snapped up 27,844 shares of Coinbase, estimated to be valued at $6.77 million.