United States-based cryptocurrency exchange Coinbase has revealed that Bitcoin (BTC) and other crypto assets have been a valuable part of the company’s treasury since its inception in 2012. In addition, the exchange has filed a formal application with the US Securities and Exchange Commission (SEC) for a direct listing.
In a recent announcement to other corporate stakeholders, the exchange offered its own experience to advise other private and public companies on how to approach their potential investments.
In a fairly lengthy Corporate Treasury FAQ, the exchange provided a comprehensive overview of the investment, accounting, and tax guidelines that companies should consider and apply when looking to diversify their treasury into crypto.
The FAQ also provides an overview of Bitcoin’s performance over the past few years from a macro perspective, comparing it favorably to other assets such as gold and the S&P 500 compensated,” said the stock exchange.
Coinbase Filed with the SEC
Coinbase filed the SEC’s Form S-1 on February 25. In another take, anonymous Bitcoin creator Satoshi Nakamoto was featured as a designated buyer.
Coinbase shares are traded on the Nasdaq exchange under the ticker COIN.
Profit of $322 million
The largest US stock exchange reported 2020 net profit of $322 million. In comparison, it lost $30 million last year. The exchange uses the following terms:
“We may not always be able to generate sufficient aggregate revenues to achieve positive cash flow or profitability from operations in each period, and our limited operating history and the volatile nature of our business make it difficult to assess our current business and future prospects. For example, although we had a net income of $322.3 million in 2020, we suffered a net loss of $30.4 million in 2019. We have addressed the risks and challenges described in this section; We will continue the competition. If we do not successfully manage these risks, our business may be adversely affected.”
The cryptocurrency giant generated 96 percent of its $1.2 billion net income from litigation awards. Axios previously reported that the company’s assumed valuation exceeded $100 billion.
In January, Coinbase announced that it had 43 million users and $90 billion in assets.